Stopping Home Foreclosure with Bankruptcy

Bankruptcy Will Stop Your Sale - At Least For Now For $395, you can stop your sale- at least that is what the ads say. You are about to find out how bankruptcy can be good or very damaging.

Bankruptcy will stop your foreclosure sale. It's a fact. However, filing bankruptcy for the sole purpose of stopping foreclosure is not what bankruptcy is for. And anyone that does this to avoid foreclosure is in violation of bankruptcy laws. Here is some basic information on bankruptcy.

What Is Bankruptcy?

There are two types of bankruptcy, Chapter 7 and Chapter 13. Filing for a Chapter 7 bankruptcy means you are asking the courts to completely discharge your debts. Filing for a Chapter 13 bankruptcy is when you set up a court- approved plan to repay your debts.

Now, the two types of bankruptcy:

1. Chapter 13: Chapter 13 bankruptcy is a repayment plan that will restructure your arrearage. More than 95% of all Ch. 13 bankruptcies filed fail. When you file the Ch. 13, this will postpone your foreclosure sale until the meeting of creditors also known as a 341 meeting. This usually takes place 60-90 days after you file. Also, when you file a Ch. 13, you are paying for 2 attorneys, your attorney to file and another to take payments and disperse the money to the creditors. At the meeting, you will have to face your creditors. Many times this can be very intimidating. The bank will ask for their money or for the judge to give them a relief of stay. The relief of stay is asking for the foreclosure to continue. If granted the attorney will re-start the foreclosure process over with a set foreclosure sale date around 30-45 days later. IF you do not have some money for reinstatement for the Mortgage Company or bank, the judge will likely grant the relief of stay. As you can see, bankruptcy will stop your sale, but it is only temporary. Now, you have to deal with the foreclosure process all over again plus now your credit is in worse shape than before because you now have a filed bankruptcy that is showing up on your credit file.

2. Chapter 7 ? A Ch. 7 bankruptcy is when you request complete debt relief. When you file a Ch. 7, you are trying to receive a discharge from all your debts that you list in your bankruptcy. If you get a discharge, this will relieve you of all your debts that are listed. Now, the bank can still get a relief of stay with a Ch. 7 Bankruptcy. Even if you receive a discharge, the bank can still take the home through foreclosure. When you get a discharge this relieves you from the debt and the responsibilities of the debt, however the Mortgage is attached to your house as a protection for the bank and their interest. Therefore, the bank can foreclose even if you have received a Ch. 7 discharge.

Bankruptcy will destroy your credit rating, therefore be careful when you speak with Bankruptcy Attorneys, this may be the only option that they know of. In other words, when you talk to someone that does bankruptcies they will influence you to file bankruptcy, when you talk to a mortgage officer or bank official, they will want to influence you to get a loan because that is what bankers do, if you talk to an investor they want to buy your house, because that is what investors do, SO be careful and look out, find someone that does not have an agenda that can give you strategic advice regarding your current situation. The rate of people that declare bankruptcy for a second time is as much as 50%. In some instances, bankruptcy may be a good choice, but all too often it causes more stress and problems for the individual. So try to resolve without the use of bankruptcy.

Jimmy Cox http://www.365homenet.com

---

The Real Estate Agent Alphabet

Alphabet Letters after a person's name seem to bestow some... Read More

European Second Home Prices Wilt in Drought

Spain and Portugal have suffered one of their worst droughts... Read More

Hurricane Katrina And The Impact On Real Estate Prices

In the wake of Hurricane Katrina's wide path of destruction,... Read More

Buying Property in Spain - How to Avoid Paying over the Odds

Spain has a lot to offer Northern Europeans and until... Read More

Real Estate Bankruptcy

Although real estate bankruptcy cases no longer dominate the bankruptcy... Read More

Transforming Doghouses into Dollhouses

Successful real estate investing depends largely on a correct assessment... Read More

Buying Country Acreage and Rural Properties, To Buy or Not To Buy

Almost anyone can become a rural property owner; if you... Read More

10 Ways To Find Investment Properties

If you really want the best deals in investment properties,... Read More

When Showing Your Home

Here below are some of the reasons why buyers may... Read More

Burn, Baby, Burn!

Luxury homes are lots of fun to inspect. Sure, the... Read More

Feel At Home Faster After You Move

Moving to a new community can be a great adventure,... Read More

Want To Be Profitable In This Real Estate Bubble? I?ll Show You How In Just Three Easy Steps

STEP#1. First you have to recognize that in order to... Read More

Practical Advice for Finding Irish Castles for Sale

Have you ever wondered what it would be like to... Read More

Various Aspects Of The Lease Purchase Business

In a previous article, we wrote why we believe that... Read More

Should You Buy Hud Homes?

Buy HUD homes are sometimes the cheapest option available for... Read More

10 Tips for Investing in Distressed or Foreclosed Properties

1. Search on the world wide web for distressed or... Read More

4 Simple Tests To Find Good Real Estate Investment Properties

You're driving along the road when you spot it. There... Read More

Planning for Real Estate with Estate Planning

One of the most important considerations you will need to... Read More

Buying Overseas Property

Fourteen Top Tips for Overseas Property Investment:1. Buy what you... Read More

Real Estate Investing: America Rents

Most people in America rent a personal dwelling!Just think how... Read More

We Buy Houses Scams ? How to Spot Them and How to Avoid Them

There are many reasons why a home owner would want... Read More

Joint Ventures In Real Estate Development; So How Do They Work?

There are many reasons why you would consider joining with... Read More

An Estate Planning Primer

An estate plan can be designed by clients and their... Read More

You Have 15 Seconds to Sell Your Home! 11 Steps You Can Take to Sell Your Home for Top Dollar

Selling your home? Here are some suggestions to help you... Read More

Join the Bulgarian Property Boom With Confidence

An Irish property investor in Sydney, Australia has created an... Read More

The Irish Property Market - Expensive But Worth It?

Lying on the edge of Europe facing out to the... Read More

Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less

For decades, the real estate world turned in a predictable... Read More

What to Look for in a Real Estate Agent

Real Estate Agents play an essential, critical role in the... Read More

Farm Expired Listings For Big Commissions

Many real estate agents begin and sometimes sadly end their... Read More

Personal Debt Can Disappear When You Set up a New Business

I teach students how to set up a new business... Read More

Preparing for a Showing

As soon as you decide to put your home on... Read More

Investing in the Baltic Tiger: What Has Estonia Got to Offer?

Estonia's reputation is growing within the property investment market. Rising... Read More

One Stop Shop for Buy to Let

As the buy to let market continues to go from... Read More