People have become concerned about declaring bankruptcy due to its potential impact on other aspects. It could have an effect on their business, credit, and homes. No one desires to have their home taken away, particularly if they are experiencing a financial crisis. What do you believe will occur if your home is still under loan and you declare bankruptcy?
First, let's clarify that there are various varieties of bankruptcy. They are as follows:
Chapter 13 bankruptcy - This is the type of bankruptcy you file if you have additional income sources.
Chapter 7 bankruptcy - This is the bankruptcy you file if you are completely destitute, meaning you have no source of income.
Why must you be informed? You should be aware that these two can impact credit in different ways.
In Chapter 13 bankruptcy, the credit will be positively affected. Why? Because in this type of bankruptcy, you will be collaborating with your credit card company and the court-appointed officer. You will collaborate with them to develop a contract under which your liabilities and payments will be analyzed. As a result, you will likely have a compensation plan that lasts between three and five years. Whatever modifications to the payment schedule may impact your mortgage in a way that reduces your credit payments. However, it can extend your period of compensation; this can be permanent or transient.
In Chapter 7 bankruptcy, on the other hand, they may take your home if you are unable to pay them back. In this bankruptcy, there are two options available. First, you get to retain your home, but you must ""reaffirm"" your mortgage and continue making payments to your lender. Second, you must give up your residence and your legal obligations will be discharged. When reaffirming a mortgage, the balance must be paid as usual. Before you can reaffirm, you must: have the most up-to-date information on your credit payments; update the compensation; and, a few weeks after filing for bankruptcy, negotiate a new compensation agreement with your lender.
If you and your lender were unable to agree on a payment schedule, the lender would be required to file a """"motion for relief from the automatic stay"""". This will be the signal for the bankruptcy court to initiate the foreclosure process.
It is recommended that you speak with a bankruptcy attorney. There are numerous bankruptcy law firms to choose from, including Woodland Hills bankruptcy attorney and Van Nuys bankruptcy attorney.
" - https://www.affordablecebu.com/
