Bankruptcy and Home Foreclosure
September 23, 2009 by admin · Comments Off
If owning a home is part of the American dream then foreclosure may be part of the American nightmare.
But home foreclosure has become a common occurrence in much of the country. As the housing bubble burst, many people have found themselves owing more to a mortgage that is more than their house is worth. Others saw their mortgage payments jump up to unmanageable levels. These people may have felt helpless, but the truth is there is home foreclosure help available.
Even if the foreclosure has already begun, there are steps you can take to save your home for today and the future.
One of the most significant and impactful steps you can take may be filing for bankruptcy.
Filing bankruptcy is designed to provide strong legal protections for your home that can help you stop foreclosure and give you the opportunity to get your past due mortgage payments up to date.
How the Bankruptcy Automatic Stay Is Designed to Stop Foreclosure
When you file bankruptcy – whether Chapter 7 or Chapter 13 – the automatic stay kicks in.
The automatic stay is a court order that puts an immediate stop to all collection actions. Bankruptcy courts consider foreclosure a type of collection, along with:
•Phone calls
•Bills
•Wage garnishment
•Repossession Read more