can bankruptcy save your home
Can Bankruptcy Save My House?
The filing of bankruptcy activates the automatic stay which prevents all creditors from any action to gather their claim including foreclosure.
Can Bankruptcy Save My House? A creditor secured by the house can find relief from the stay to complete the foreclosure if there is danger that the secured claim will become larger than the value of the security during the bankruptcy. Since the creditor’s lien is not removed by the bankruptcy, Chapter 7 provides temporary relief from foreclosure, but no lasting solution.
If you are among the record number of under pressure families who face increasing mortgage payments on a home where much of the value has already gone, you may be running out of options. Most banks are not eager to renegotiate rates or extend loans, opting instead to foreclose on properties.
Can Bankruptcy Save My House? If you are about to lose your home through foreclosure, filing bankruptcy can seem enticing. As soon as you file bankruptcy, your lender will suspend foreclosure proceedings temporarily. Your lender’s attorneys will then present the court that your lender has a security interest in your home. The bankruptcy court will likely let your lender to continue foreclosure.
Although you may maintain your home for a few months more, the consequences of filing bankruptcy and home foreclosures can cause long term financial suffering. Legal proceedings such as bankruptcy and foreclosure remain on your credit history for ten years. Although it may be possible to get credit within that time, it will likely cost more in interest rates and additional charges. It is possible to qualify for a mortgage loan right after your bankruptcy has been discharged or your property seized, however, the terms are usually so adverse that few borrowers actually obtain one. The rising use of credit reporting and scoring by employers, insurance companies, and other entities can reduce your options if you have a foreclosure and/or bankruptcy on your credit record.
We know your house is important to you and your family. We also want you to create good economic decisions. Your bankruptcy lawyer will discuss the costs and benefits of home ownership with you. Your bankruptcy attorney will also help you decide whether it is the best decision for you and your family to try to stay your home. And if this is your choice, your bankruptcy attorney will help you craft the best plan to give you the best chance of winning the battle to save your home from foreclosure.
If losing your home is pending then you may be considering bankruptcy as a way to absolve all of your debts and start with a clean slate. However, there are many negative phases to filing for bankruptcy. Any credit cards that are included in your bankruptcy claim will no longer be applicable. Any cars that are in the claim will be retrieved. You will be dispossessed from your home if the mortgage is included. Your credit will be totally ruined and a bankruptcy will remain on your record for ten years that is three years longer than a foreclosure. Therefore bankruptcy should be your very last choice if it is at all avoidable. But you do not need an attorney to file bankruptcy. It could cost you a lot of money.
You can always hire a bankruptcy petition preparer to prepare your petition. They only charge less, they are authorized to do it and the end result is the same. To know more on how to file bankruptcy, visit http://www.onlinebkassist.com.
About the Author
Steve Young is the author of The #1 Secret On How To File Bankruptcy. To get your free CD on How to File Bankruptcy Without an Attorney, go to http://www.onlinebkassist.com
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