How Does Bankruptcy Help Against Foreclosure
There is probably no situation as difficult as facing a foreclosure.
When you are about to lose your property, and have no money to pay back your debts, bankruptcy might pose as a convenient option.
Despite the fact that it makes an extremely negative impact on your credit records, and is associated with a great deal of negative feelings, bankruptcy helps immensely during periods of severe financial difficulties by means of automatic stay, which comes along with it, and helps you to avoid foreclosure for at least a particular period of time.
If bankruptcy filing is the only option left to you for saving your property from being sold, it is better to view it with a positive outlook.
One of the positive aspects of bankruptcy filing includes an automatic stay that instantly relieves you off the lawsuit filed against you by the creditors, and also the vigorous collection attempts made by them.
The automatic stay is court order that becomes functional the instant you file for bankruptcy.
It is definitely a good way to save your property from being sold for at least some time.
Filing a chapter 7 bankruptcy helps, but only to a limited extent.
Since the creditor might want to continue with the lawsuit once the bankruptcy comes to an end, it does not help in complete prevention of the foreclosure.
However, it does provide you a certain time period in which you might arrange for money to release your property from being seized.
Moreover, it does help you with certain tax benefits as well.
Chapter 13 bankruptcy provides you an absolute relief from the hassles of foreclosure, along with enabling you to pay back the loan through a convenient repayment plan.
It is perfectly suitable for people who are making a certain income even while facing financial crisis.
With chapter 13 bankruptcy, you might require to pay some amount of your debt, but in a way that suits your financial condition.
Immediately after the bankruptcy process starts, you are provided with a payment plan through which you can pay back your financial debts over a fixed period of time with regard to your comfort level.
The best part of chapter 13 bankruptcy is that as long as you continue to pay back your dues over a fixed period of time, the creditors are not allowed to harass you for money.
However, there are certain cases where automatic stay fails to work.
They are: Firstly, the regular duration of automatic stay gets reduced considerably if the creditor decides to file a petition with the court to withdraw the automatic stay, and the court accepts the petition, thereby allowing him to sell the mortgaged property.
Secondly, automatic stay cannot work in case the bankruptcy filing is done after the foreclosure notice has already been sent to the property owner.
In such a situation the foreclosure can be held back only till the time mentioned in the notice.
When you are about to lose your property, and have no money to pay back your debts, bankruptcy might pose as a convenient option.
Despite the fact that it makes an extremely negative impact on your credit records, and is associated with a great deal of negative feelings, bankruptcy helps immensely during periods of severe financial difficulties by means of automatic stay, which comes along with it, and helps you to avoid foreclosure for at least a particular period of time.
If bankruptcy filing is the only option left to you for saving your property from being sold, it is better to view it with a positive outlook.
One of the positive aspects of bankruptcy filing includes an automatic stay that instantly relieves you off the lawsuit filed against you by the creditors, and also the vigorous collection attempts made by them.
The automatic stay is court order that becomes functional the instant you file for bankruptcy.
It is definitely a good way to save your property from being sold for at least some time.
Filing a chapter 7 bankruptcy helps, but only to a limited extent.
Since the creditor might want to continue with the lawsuit once the bankruptcy comes to an end, it does not help in complete prevention of the foreclosure.
However, it does provide you a certain time period in which you might arrange for money to release your property from being seized.
Moreover, it does help you with certain tax benefits as well.
Chapter 13 bankruptcy provides you an absolute relief from the hassles of foreclosure, along with enabling you to pay back the loan through a convenient repayment plan.
It is perfectly suitable for people who are making a certain income even while facing financial crisis.
With chapter 13 bankruptcy, you might require to pay some amount of your debt, but in a way that suits your financial condition.
Immediately after the bankruptcy process starts, you are provided with a payment plan through which you can pay back your financial debts over a fixed period of time with regard to your comfort level.
The best part of chapter 13 bankruptcy is that as long as you continue to pay back your dues over a fixed period of time, the creditors are not allowed to harass you for money.
However, there are certain cases where automatic stay fails to work.
They are: Firstly, the regular duration of automatic stay gets reduced considerably if the creditor decides to file a petition with the court to withdraw the automatic stay, and the court accepts the petition, thereby allowing him to sell the mortgaged property.
Secondly, automatic stay cannot work in case the bankruptcy filing is done after the foreclosure notice has already been sent to the property owner.
In such a situation the foreclosure can be held back only till the time mentioned in the notice.
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