How Does Bankruptcy Help Against Foreclosure

How Does Bankruptcy Help Against Foreclosure """There is likely no circumstance more difficult than confronting foreclosure. When you are on the verge of losing your property and have no money to repay your debts, bankruptcy may be a viable option. As a result of the automatic stay that comes with bankruptcy, you are able to avoid foreclosure for at least a specified period of time, despite the fact that it has an extremely negative impact on your credit records and is associated with a great deal of negative feelings.

If filing for bankruptcy is your only remaining option to prevent the sale of your property, you should adopt a positive outlook. One of the benefits of filing for bankruptcy is an automatic stay that immediately releases you from the lawsuit filed against you by creditors and their aggressive collection efforts. The automatic stay is a court order that goes into effect immediately upon filing for bankruptcy. It is an excellent method to prevent the sale of your property for at least some time.

Chapter 7 bankruptcy is helpful, but only to a limited degree. Since the creditor may wish to continue the litigation after the bankruptcy is discharged, it does not prevent the foreclosure completely. However, it does allow you a certain amount of time to arrange for funds to prevent your property from being seized. Additionally, it provides you with certain tax benefits.

Chapter 13 bankruptcy provides complete relief from the burdens of foreclosure and allows you to repay the loan through a flexible repayment plan. It is ideal for individuals with a certain income who are also experiencing a financial crisis. Chapter 13 bankruptcy may require you to repay a portion of your debt, but in a manner that fits your current financial situation. Immediately following the commencement of the bankruptcy procedure, you are provided with a payment plan that allows you to repay your debts over a fixed period of time, according to your comfort level.

The greatest aspect of chapter 13 bankruptcy is that creditors cannot harass you for money as long as you continue to pay back your debts over a set period of time.

In certain circumstances, automatic stay does not function. The following are:

First, the normal duration of the automatic stay is significantly reduced if the creditor files a petition with the court to withdraw the automatic stay and the court grants the petition, allowing the creditor to sell the mortgaged property.

Second, the automatic stay cannot be invoked if the bankruptcy is filed after the notice of foreclosure has been sent to the property owner. In such a case, the foreclosure can only be delayed until the time specified in the notice.""

" - https://www.affordablecebu.com/