How Bankruptcy Can Positively
Affect Foreclosures

If you are facing foreclosures, you may want to do whatever is possible to postpone or even eliminate the threat of foreclosure altogether. Filing for bankruptcy can help you achieve this.

How Can Bankruptcy Give You Time?

When you file for bankruptcy, the courts may order your lenders to stop foreclosure proceedings. This can give you more time to figure out what to do with your debt and arrange for future living arrangement in case you cannot completely stop the foreclosure.

Chapter 13 Bankruptcy

If you meet certain income requirements, you may set up an arrangement with the bankruptcy court where you will pay a certain amount to the lenders over a certain period of time. In exchange, you may keep your home. This can be extremely beneficial, especially if the repayment term that you have made with the courts is more favorable than the one you have with your mortgage lender.

Chapter 7 Bankruptcy

If you do not meet the income requirements, you may need to file for Chapter 7. This may eliminate all debt you may have regarding your house, including some tax liabilities incurred because of your home. While you may not get to keep your home, getting rid of the debt can also be advantageous in starting over.

If you are facing foreclosure, an attorney may help you determine whether filing for bankruptcy is the right choice for you. Call Brace W. Luquire to learn more about how bankruptcy can positively affect foreclosures.