Salt lake foreclosure : It has been said that delinquent borrowers can protect their homes from being foreclosed by declaring personal bankruptcy. Continue reading this article to learn more about the different types of bankruptcy and how declaring bankruptcy can impact the home foreclosure process. Foreclosure is a legal process where a borrower’s ownership of a property is terminated, usually due to inability to make mortgage payments. The foreclosure process usually involves the forced sale of the property where the proceeds of the sale are used to pay off the mortgage debt.
Declaring bankruptcy can really stop the foreclosure proceedings. Not only that, it can also end harassment from debt collectors and give the debtor enormous time to make up for missed payments and do some reorganization of their debt payments. There are also cases wherein declaring bankruptcy can help the debtor save his home permanently. Once a debtor declares bankruptcy, the first thing it accomplishes is the cessation of the foreclosure process. Usually and legally it will postpone the sale of your home for at least three to four months event if it has already been scheduled for foreclosure sale.
However, this won’t end all your foreclosure problems. Declaring bankruptcy may temporarily save your home from foreclosure, but you as the debtor still have to make a deal with the mortgage company to repay the past due amount to enable you to keep your home. This is why declaring Chapter 7 bankruptcy to stop the foreclosure of your home is not advised because often, it only delays the ultimate foreclosure. More often than not, debtors ultimately lose their homes in a Chapter 7 bankruptcy process.
Chapter 13 bankruptcy is more effective in foreclosure process and if there is equity, bankruptcy is often advised by experts as a prudent financial decision. With a Chapter 13 bankruptcy, a debtor will be given the opportunity to reorganize their finances and to repay his debts in a time span of three to five years where the bankruptcy court agrees to an income-based budget with a trustee receiving monthly payments from the debtor. Debtors can easily bounce back from bankruptcy with their homes intact and still in their possession so long as they kept up with their payments and in the process rebuild and reestablish their credit ratings.
For more information on bankruptcy and foreclosure, contact a bankruptcy lawyer who has experience in bankruptcy law and helping clients protect their assets. The Law Office of Charles Craig Brown is comprised of dedicated Utah bankruptcy attorneys who put the client’s interests first. The experienced Utah bankruptcy attorneys of the Law Offices of CC Brown Law firm will guide you through the bankruptcy process and ensure that you receive the protection you deserve.
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