Bankruptcy and Home Foreclosure
September 23, 2009 by admin · Leave a Comment
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
Could Chapter 13 Bankruptcy Save Your Home From Foreclosure?
February 8, 2009 by admin · Leave a Comment
You May Be Able To File Bankruptcy And Keep Your Home
Times are tough. If you’ve fallen behind on your mortgage payments, you’re certainly not alone in your struggle. In fact, a foreclosure occurs every 13 seconds in the United States, according to The Center for Responsible Lending. But just because you may be facing bankruptcy, it doesn’t necessarily mean that you must lose your home to foreclosure. If you act quickly, you’ll likely have debt-relief options that could help protect your home.
One of those debt-relief options may be filing Chapter 13 Bankruptcy.
How Does Bankruptcy Stop Foreclosure?
When a person files for bankruptcy, the automatic stay typically goes into effect right away.
Under the stay, creditors are court-ordered to stop all collection efforts, which include:
• foreclosure
• repossession
• some lawsuits
• most wage garnishments
• harassing phone calls & letters
Millions of Americans with money problems, and facing foreclosure on their home, have sought the protection of the automatic stay, and filed Chapter 13 bankruptcy to save their homes. Read more