foreclosure bankruptcy laws
Some people think: "Should I file bankruptcy or let foreclose my mortgage?
Basically, it is not an either / or decision.
A mortgage lender will file a foreclosure action if they do not pay their monthly mortgage
Payments. The only way to stop a foreclosure action is pay to the lender. A mortgage
Loan type, such as a car loan. If a person does not pay his car payment, he loses the car
by the withdrawal. If a Person does not pay his mortgage payment, he loses his home
through foreclosure.
Bankruptcy is an action of someone who can not pay its debts submitted. It stops all civil
Proceedings against the debtor while the debtor is in bankruptcy. So, by law, a mortgage bank
has all the legal measures suspend, including a foreclosure action. However, a mortgage bank can
File for the exemption from the automatic stay, and if the relief granted, will go easy with the
Enforcement. The bottom line is that bankruptcy is not to stop foreclosure and it does not
allow a debtor, to keep a house without paying the mortgage. Bankruptcy only slows
Process of foreclosure.
While bankruptcy does not stop foreclosure, it may one Give the person time to pay for a mortgage or
make it easier for a person to pay a lender.
Since bankruptcy requires a mortgage lender to a foreclosure action to suspend a debtor has a small
Time the money to the lender raise. Also, since bankruptcy can discharge some unsecured
Debt, the debtor may have more money to pay with his mortgage payments.
Even a Chapter 13 bankruptcy is a court ordered payment plan and allows an Debtor to pay the
Mortgage catch up amount over a specified period.
Unfortunately, not all qualify for bankruptcy. And if they are not considered, there is legal fees
to pay. The attorneys' fees and charges can be more than the amount needed to catch up and make
current mortgage payments.
If you think that bankruptcy may help you to stop or avoid foreclosure, talk with a licensed attorney.
Bankruptcy is so detailed that you should not try to treat it yourself.
This article is general information. If you have questions of any nature by avoiding
Foreclosure, talk with an attorney licensed in your state.
This article can be republished, but the wording must not be altered and the author links below must remain active.
Stop! Don’t blindly chase any option to stop, avoid, or prevent foreclosure. See what works at Stop Foreclosure – Five Options You Need To Know. And click here for more insights on bankruptcy vs foreclosure.
NRN ‘10 – The Forgotten Foreclosure Crisis: Liz Warren – bankruptcy laws hamstring consumers
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