Prevent Foreclosures » which is better foreclosure or bankruptcy http://www.prevent-foreclosures.net Lets Stop It Before Its Too Late! Mon, 10 Jan 2011 18:23:48 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 http://www.prevent-foreclosures.net http://www.prevent-foreclosures.net/wp-content/plugins/maxblogpress-favicon/icons/favicon-36.ico Prevent Foreclosures Can you stop foreclosure with filing bankruptcy? http://www.prevent-foreclosures.net/avoid-foreclosure/bankruptcy/can-you-stop-foreclosure-with-filing-bankruptcy http://www.prevent-foreclosures.net/avoid-foreclosure/bankruptcy/can-you-stop-foreclosure-with-filing-bankruptcy#comments Sat, 08 Aug 2009 19:11:56 +0000 admin http://www.prevent-foreclosures.net/?p=194
You may have heard that by filing bankruptcy, you can stop foreclosure. While filing bankruptcy leads to the issue of the automatic stay which stops creditors and collectors from all collecting efforts, it does not totally stop the foreclosure process. However, bankruptcy certainly delays the foreclosure process which may be what the homeowner needs to figure something out with the bank. You need to find out more about the effects and consequences of filing bankruptcy because it can cause more harm than good in some cases.

Can you stop foreclosure with filing bankruptcy? is a post from: Prevent Foreclosures

]]> Many homeowners have heard that they can stop foreclosure if they file for bankruptcy protection. It is true that filing bankruptcy is a way to deal with foreclosure. Sometimes, bankruptcy can stop the foreclosure process completely while the homeowner works out a deal with his or her bank. Other times, filing bankruptcy just buys time and delays the foreclosure process. There is no guarantee that filing bankruptcy will help with foreclosure but it always buys some time for the homeowner to figure out what to do. But, there are many problems that can occur when you try to file for bankruptcy protection so you need to think carefully before you file the bankruptcy petition.

A debtor who does not have any assets to worry about and has no money to pay the mortgage payments will likely seek bankruptcy protection. To do this, he or she must petition in the bankruptcy court. There are many steps that he or she must follow. Recently, the laws changed to make it harder for people to file for bankruptcy protection. You can still do it if you really need to.

The Automatic Stay

The automatic stay is what a homeowner wants when he or she files for bankruptcy protection. Once the automatic stay is issued by the bankruptcy court, all efforts to collect debts from the bankrupt debtor must cease. That means, creditors have to stop calling you or trying to collect from you by law. Collection agencies, repo men, etc will have to quit what they are doing and leave you alone until the bankruptcy case is heard in court. The automatic stay also stops any lawsuits pending on the homeowner who has filed for bankruptcy protection. Basically, according to the law, once the automatic stay is issued, the homeowner is safe, at least for a while.

The outcome of filing bankruptcy

Depending on the type of bankruptcy filed, the outcome will be different for different bankruptcy cases. In some cases, by filing for bankruptcy protection, a homeowner in foreclosure can stay in his or her home for years pending the outcome of the bankruptcy case. This is why some people refer to filing for bankruptcy protection as a way to live 'rent free' and avoid foreclosure. But, in the end, it is up to the bankruptcy judge to decide the fate of the homeowner's case. If the homeowner is able to work out a deal with the mortgage company, then he or she may be able to work out a payment plan and continue to live in the home. If not, he or she will have to move out after the bankruptcy case is closed.

If you are serious about filing for bankruptcy protection, it is best to find out more about the consequences first. This book is a great resource to help you decide if filing for bankruptcy protection is right for you. The book will tell you the differences between different chapter of bankruptcy such as Chapter 7 and Chapter 13.

The New Bankruptcy: Will It Work for You?

Can you stop foreclosure by filing bankruptcy

Can you stop foreclosure by filing bankruptcy

Can you stop foreclosure with filing bankruptcy? is a post from: Prevent Foreclosures

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