Foreclosure Defense vs. Bankruptcy
Foreclosure Defense vs. Bankruptcy
When struggling to pay the bills, individuals have the choice to either declare bankruptcy or go through a foreclosure. A foreclosure can damage your credit score for years, and you are still left with the mortgage debt. Most mortgage creditors will not consider you for future mortgages if you have a foreclosure on your credit history.
Bankruptcy allows you to start fresh.
Mortgages are "full recourse loans", allowing lenders to recover the entire amount owed to them, therefore bankruptcy
does not always stop forclosure. Declaring bankruptcy may allow an individual to keep their house. As soon as bankruptcy is filed, an automatic stay order is filled, which suspends foreclosure proceedings until the bankruptcy has been resolved in court. A likely outcome of bankruptcy is keeping certain real estate, including the home, as long as the individual follows the terms of the agreement.
Keeping your home
If you want to keep your home, Chapter 13 bankruptcy
may be the best option, as it allows you to pay off at least part of the mortgage within 3-5 years. However, people must pass a means test to qualify for this. Chapter 7 bankruptcy
cannot always prevent foreclosure, but it can limit the amount you pay back and has a less negative impact on a person’s credit score, and so is almost always preferable.
Automatic stay 90 days
As Soon as a bankruptcy is filed an automatic stay goes into effect for 90 days It can suspend court action like foreclosure ,however the stay can be lifted early consult an attorney for specifics about your case.
Let us help you decide! Protect your rights, your family, and your future. Call now for a free consultation at (407) 478-0074, contact us by email, or complete our contact form; for experienced debt relief advocate you can trust.