Credit-Yogi

Bankruptcy to Stop Foreclosure Is an Option

 

Phoenix, AZ -- (ReleaseWire) -- 03/10/2014 -- Bankruptcy to Stop Foreclosure

There are many families living in homes they may have to leave if they can’t forestall a foreclosure procedure. Often, the homeowners have looked into the best loan modification companies to no avail. They’ve made inquiries into other options, but have realized that filing for bankruptcy is be the only way they can get out of this predicament. Credit-yogi.com is here to help people dealing with foreclosure by clarifying how bankruptcy can help stop the process, such as:

- Automatic Stay
- Chapter 13
- Chapter 7
- Bankruptcy Lawyers

The Automatic Stay

The automatic stay prevents creditors from attempting to collect debts from a person facing foreclosure. When homeowners are at the point where “My bank keeps avoiding my mortgage modification request” sums up their situations, bankruptcy may be their best move. There are two types of bankruptcy that can help prevent foreclosure, Chapters 7 and 13, both of which work differently and which will be explained below.

Chapter 13 Bankruptcy

When the Obama HAMP plan went into effect, many people were in debt so far over their heads that they didn’t qualify for it. When a person files for Chapter 13 bankruptcy, he’s actually signing a contract to repay his creditors over an approximately 5-year time period. This type of bankruptcy looks at one’s overall worth and works with him to devise a reasonable repayment schedule. With this method, he is usually able to keep his home. Credit-yogi.com recommends contacting a good bankruptcy lawyer to help figure out an affordable reimbursement plan.

Chapter 7 Liquidation Bankruptcy

Periodically, the realization that his “lender keeps avoiding my mortgage modification request” hits him and he sees that he’ll have to look at a different source to help him avoid foreclosure. Chapter 7 bankruptcy also has the automatic stay, but it liquidates any assets one has in order to pay off as many debts as possible. While this can be helpful when foreclosure is looming in the future, it cannot save a home. It can give an owner time to find another house, though, or to save enough to rent an apartment, so it’s still worth doing.

Attorneys for Successful Bankruptcies

After looking at the best loan modification companies and all the other options to avoid foreclosure, it may be wise to accept that bankruptcy is the course of action one must take and find an experienced lawyer to ascertain that one’s result is as positive as it can be. Asking other people who have filed for bankruptcy who they chose is one way to begin the search, as is going online to the state or local bar associations. These hold a wealth of information about every attorney and can be valuable tools to choose the right one.

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