7 Bankruptcy Stop Foreclosure – May Chapter 7 Stop Foreclosure?
If you are having trouble making your home payments and the bank is threatening foreclosure, you may be considering declaring Chapter 7 Bankruptcy, and you are probably wondering whether bankruptcy will stop foreclosure.
While filing a Chapter 7 Bankruptcy will briefly halt foreclosures, there isn’t guarantee that bankruptcy will in reality stop foreclosures. Once you file for Chapter 7, a computerized stay is put into spot to stop creditors from coming once you constantly until the court can part of and determine what to do with that which you own. Should you file a Chapter 7 bankruptcy, you are saying that you’ve got no way to pay the money you owe which means you won’t be working out a repayment program. Instead, the trustee can take your property and sell it to repay some of the money you owe. A certain amount of your house equity may be protected, though, based on which state you live in.
Still, if you have a lot of equity in your home and only a small amount that’s actually protected where you live through the homestead exemption, there is a good possibility that the bankruptcy trustee will sell your home, and you will wind up walking away with the whatever money was exempted because of the exemption, but you’ll still lose your home. Ensure that you always make contact with a bankruptcy lawyer from your state before you make the final decision on filing for bankruptcy.
Having said that, don’t wait until last second to obtain in contact with mortgage loan modification companies or mortgage refinance institutions, this really is about your house which means you need to do all you can to prevent your house going into foreclosures proceeding.
NOTE: By researching and comparing the home mortgage loan modification companies in the market, you will determine the one that meets your very specific financial situation.
You are very welcome to visit the Mortgage Loan Modification website – where you can review the best resources to stop foreclosure.
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