A common question that comes up is can you stop foreclosure filing bankruptcy. Each state has different laws and procedures about how a bankruptcy is handled. There have been some homeowners that have reported successfully stopping foreclosure by going through the bankruptcy process. It certainly is possible to do although you must understand what each of these routes could do to your future. It’s easy to say that a bankruptcy is a way out of paying for massive debts. The federal laws were updated in 2007 to stop people that do not qualify for a bankruptcy. There is an entirely different review process that you must complete before a court will accept a filing for bankruptcy.
Stop Foreclosure Filing Bankruptcy
Bankruptcies are designed to relieve debt upon approval of the judicial system. A judge must intervene and a bankruptcy trustee works with someone directly to make sure he or she truly qualifies for debt relief. A homeowner that has a steady job but cannot make mortgage payments could qualify for protection under the law. The problem with job loss and financial hardship is that there are usually little to no personal assets. Secured debts might be forgiven, but a foreclosed home might not and a lender could take back a property. A Chapter 7 bankruptcy proceeding could erase consumer debt with court approval although it is not designed to rid your mortgage debt.
Chapter 13 is the most complex form of bankruptcies and the hardest to qualify. The courts have no authority to require that a bank or lender reduce interest rates or remove a portion of a mortgage. A court intervention can usually delay a foreclosure while you get your personal finances in order. Bills still must be paid on time and a trustee will manage your entire monthly finances. If you are approved for a bankruptcy and your home is still foreclosed, the amount that is erased by a lender is considered earned income for you. This is the hidden surprise that most people get after trying to stop foreclosure using the process of bankruptcy for protection. A tax complication could put you in financial turmoil for many years with the IRS.
“Stop Foreclosure Filing Bankruptcy”
Avoid Foreclosure can help you when you have no place left to turn. We believe that if more homeowners contacted us first, there would be a higher success rate to stop foreclosure from ruining the lives of good people. A bankruptcy could be a way out or it could be a complete disaster to your credit and your life. What we do is listen to your story. We know that not every story is the same and all are unique. We have trained financial experts that are willing to help you right now. We know exactly what can be done to stop the foreclosure process and help you live completely normal again. Call us at 1-800-589-4106 and get the free help you deserve to receive. We are experts at helping people in every U.S. state. Find out if it is right for you to stop foreclosure filing bankruptcy.