Can Bankruptcy Save Me From Foreclosure?

Friday 5th of October 2012 01:48:37 AM

Can bankruptcy save your home from foreclosure?
It is possible to keep your home, your family stability intact, and keep your address by using one of the fastest and most powerful tools to stop foreclosure, bankruptcy.  Often people think of bankruptcy in a negative light, but you don?t have to when you get a new perspective and learn the advantages in the long run.
It may be time for you to seriously consider bankruptcy if you answer yes to any of the following questions:

  • Have you missed mortgage payments?
  • Are you receiving any messages threatening foreclosure?
  • Are you afraid you are going to lose your house due to your financial situation?

To answer the question:  ”Can bankruptcy save your home from foreclosure,” you need to educate yourself so you can stand with confidence in your final decision.  After realizing it is time to take action to save your home, next decide which bankruptcy is the best fit for you, considering your financial circumstances–Chapter 7 or Chapter 13?
Chapter 7 bankruptcy is the best choice if you don?t have a lot of liquid or physical assets.  This is a total package deal and the preferred way to file, if you qualify.  In order to meet the requirements for Chapter 7, you must make less money than the average or median in your area, region, or part of the country.  
Chapter 13 bankruptcy isn?t the preferred method to stop foreclosure, but it has a benefit called  ?lien stripping? that can hold back junior creditors in another way.  This comes in the form of a modification that brings you great benefits if your residence is worth less than you owe.  Basically, if you have a second mortgage on your home, you will file with the court to strip the second loan.  The lien will be gone causing the lender to become unsecured debt and bundle together with any other debt you are trying to eliminate, like credit cards.
Can bankruptcy save your home from foreclosure?
As soon as your bankruptcy is filed in the court, all collection appeals by your creditors must stop.  This is a federal order by the court to put an automatic stop to all creditors who may want to continue to harass you.

So what do you think?  Can bankruptcy save your home from foreclosure? Now it’s up to you to decide.


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