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Posted by: | Posted on: April 12, 2021

Stop Foreclosure through Chapter 7 Bankruptcy-Things To Know

You can’t turn on the news these days without hearing about the foreclosure crisis in the United States. People are blaming each other for the mortgage crisis, which is included in all of this reporting. There are also advertisements for loan modification, which has a success rate of about 5%. It’s all over the place. It’s possible that it’s happening right now in your own neighbourhood. Many people are unaware that bankruptcy is one of the only legal options for stopping a foreclosure. When a bankruptcy petition is filed, an automatic stay is imposed, halting all collection efforts against the debtor. In layman’s terms, this means that creditors are prohibited from contacting the debtor for any reason. The automatic stay gives the court the authority to prohibit foreclosures, wage garnishments, and civil proceedings such as litigation and judgments. Visit this site

Most people toss around all sorts of wild ideas in an attempt to come up with a solution before getting serious and deciding that bankruptcy is the only option. People always bury their heads in the sand and wait until the day of the auction to contact a bankruptcy attorney. This is a bad idea since many bankruptcy lawyers would refuse to take the case due to the hurried timeline.

A Chapter 7 bankruptcy could, at the very least, put a halt to a foreclosure. When it comes to foreclosure, Chapter 13 bankruptcy is usually a safer option. A Chapter 7 bankruptcy can be used depending on what is causing the bulk of the financial difficulties.
Many Americans have been frustrated by credit card debt in some situations. When this is the case, Chapter 7 bankruptcy can be used to discharge all unsecured loans, allowing the debtor to catch up with their mortgage payments and escape foreclosure. Another advantage in a Chapter 7 is that it would wash away any debtor’s deficit from a previous foreclosure.

Chapter 13 bankruptcy is the most effective way to avoid foreclosure. A Chapter 13 bankruptcy allows the debtor to work out a payment agreement for their creditors to catch up on all back payments. They prioritise their debts to be settled in a Chapter 13 bankruptcy, with secured debts at the top of the list. If the debtor decides not to retain the house, they will be able to save it from foreclosure in certain instances. A bankruptcy attorney should be a necessary evil, regardless of which chapter of bankruptcy you want. With all of the amendments to the bankruptcy code, it’s almost pointless to file for bankruptcy on your own. Consult a bankruptcy attorney before making a decision to see whether bankruptcy is a viable option for you.