Which Is Worse Foreclosure or Bankruptcy
It can be very difficult to choose between settling for bankruptcy or allowing a foreclosure to take place. Few people realize how difficult the choice is to make, or recognize that the decision is not an either/or one. A mortgage lender will file a foreclosure action when it is not paid its monthly mortgage payments.
The only way to stop this is to pay the mortgage lender. Most people realize how important it is to make your car payments on time every month, if you do not want to have your car repossessed. Similarly, an individual may lose their home through foreclosure if they do not keep up with the monthly payments on their mortgage.
If a person's debt is so bad that they cannot pay their debts, then they sometimes must file bankruptcy. This action stops all civil proceedings against the debtor while the debtor is in bankruptcy. A foreclosure can be halted through these means because lender is required to cease all their legal actions against the debtor.
Once they are granted such relief, they will continue with their legal actions against the home buyer. Bankruptcy does not allow you to keep a home that is not paid for to the mortgage lender, and it will not stop foreclosure. Bankruptcy will slow the action, but it will not prevent it.
While bankruptcy doesn't stop foreclosure, it can give a person extra time to pay the lender, or make it easier to do so. Mortgage lenders are required to stop their foreclosure due to bankruptcy, and this gives the person owing money additional time to raise money to pay the lender. Through bankruptcy, many unsecured debts are eliminated completely, and a person who is in debt will frequently find that they have money to pay their mortgage payments with that they didn't before bankruptcy. Also, a chapter 13 bankruptcy is a court ordered payment plan and allows a debtor to pay the mortgage catch up amount over a period of time.
Of course, there is a good chance that a debtor might not actually be able to file for bankruptcy, as eligibility is an issue, and even if they do qualify, there are legal fees that need to be paid. For some, they may find that the exorbitant fees they are asked to pay are even higher than the payments they were behind on. Anyone considering bankruptcy to prevent foreclosure should discuss it with a lawyer. Bankruptcy is a complicated legal process that should not be handled by yourself alone. The scope of this article is to give you basic information, and if you are wanting more detailed information, you need to speak to a lawyer who is actually licensed in your home region.
The only way to stop this is to pay the mortgage lender. Most people realize how important it is to make your car payments on time every month, if you do not want to have your car repossessed. Similarly, an individual may lose their home through foreclosure if they do not keep up with the monthly payments on their mortgage.
If a person's debt is so bad that they cannot pay their debts, then they sometimes must file bankruptcy. This action stops all civil proceedings against the debtor while the debtor is in bankruptcy. A foreclosure can be halted through these means because lender is required to cease all their legal actions against the debtor.
Once they are granted such relief, they will continue with their legal actions against the home buyer. Bankruptcy does not allow you to keep a home that is not paid for to the mortgage lender, and it will not stop foreclosure. Bankruptcy will slow the action, but it will not prevent it.
While bankruptcy doesn't stop foreclosure, it can give a person extra time to pay the lender, or make it easier to do so. Mortgage lenders are required to stop their foreclosure due to bankruptcy, and this gives the person owing money additional time to raise money to pay the lender. Through bankruptcy, many unsecured debts are eliminated completely, and a person who is in debt will frequently find that they have money to pay their mortgage payments with that they didn't before bankruptcy. Also, a chapter 13 bankruptcy is a court ordered payment plan and allows a debtor to pay the mortgage catch up amount over a period of time.
Of course, there is a good chance that a debtor might not actually be able to file for bankruptcy, as eligibility is an issue, and even if they do qualify, there are legal fees that need to be paid. For some, they may find that the exorbitant fees they are asked to pay are even higher than the payments they were behind on. Anyone considering bankruptcy to prevent foreclosure should discuss it with a lawyer. Bankruptcy is a complicated legal process that should not be handled by yourself alone. The scope of this article is to give you basic information, and if you are wanting more detailed information, you need to speak to a lawyer who is actually licensed in your home region.
About the Author:
How Much Is Home Insurance a Month offers more reviews, check out: sales insurance health insurance findlay ohios.
posted by Credit Counseling at
2:11 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home