Stopping Home Foreclosure with Bankruptcy

Bankruptcy Will Stop Your Sale - At Least For Now For $395, you can stop your sale- at least that is what the ads say. You are about to find out how bankruptcy can be good or very damaging.

Bankruptcy will stop your foreclosure sale. It's a fact. However, filing bankruptcy for the sole purpose of stopping foreclosure is not what bankruptcy is for. And anyone that does this to avoid foreclosure is in violation of bankruptcy laws. Here is some basic information on bankruptcy.

What Is Bankruptcy?

There are two types of bankruptcy, Chapter 7 and Chapter 13. Filing for a Chapter 7 bankruptcy means you are asking the courts to completely discharge your debts. Filing for a Chapter 13 bankruptcy is when you set up a court- approved plan to repay your debts.

Now, the two types of bankruptcy:

1. Chapter 13: Chapter 13 bankruptcy is a repayment plan that will restructure your arrearage. More than 95% of all Ch. 13 bankruptcies filed fail. When you file the Ch. 13, this will postpone your foreclosure sale until the meeting of creditors also known as a 341 meeting. This usually takes place 60-90 days after you file. Also, when you file a Ch. 13, you are paying for 2 attorneys, your attorney to file and another to take payments and disperse the money to the creditors. At the meeting, you will have to face your creditors. Many times this can be very intimidating. The bank will ask for their money or for the judge to give them a relief of stay. The relief of stay is asking for the foreclosure to continue. If granted the attorney will re-start the foreclosure process over with a set foreclosure sale date around 30-45 days later. IF you do not have some money for reinstatement for the Mortgage Company or bank, the judge will likely grant the relief of stay. As you can see, bankruptcy will stop your sale, but it is only temporary. Now, you have to deal with the foreclosure process all over again plus now your credit is in worse shape than before because you now have a filed bankruptcy that is showing up on your credit file.

2. Chapter 7 ? A Ch. 7 bankruptcy is when you request complete debt relief. When you file a Ch. 7, you are trying to receive a discharge from all your debts that you list in your bankruptcy. If you get a discharge, this will relieve you of all your debts that are listed. Now, the bank can still get a relief of stay with a Ch. 7 Bankruptcy. Even if you receive a discharge, the bank can still take the home through foreclosure. When you get a discharge this relieves you from the debt and the responsibilities of the debt, however the Mortgage is attached to your house as a protection for the bank and their interest. Therefore, the bank can foreclose even if you have received a Ch. 7 discharge.

Bankruptcy will destroy your credit rating, therefore be careful when you speak with Bankruptcy Attorneys, this may be the only option that they know of. In other words, when you talk to someone that does bankruptcies they will influence you to file bankruptcy, when you talk to a mortgage officer or bank official, they will want to influence you to get a loan because that is what bankers do, if you talk to an investor they want to buy your house, because that is what investors do, SO be careful and look out, find someone that does not have an agenda that can give you strategic advice regarding your current situation. The rate of people that declare bankruptcy for a second time is as much as 50%. In some instances, bankruptcy may be a good choice, but all too often it causes more stress and problems for the individual. So try to resolve without the use of bankruptcy.

Jimmy Cox http://www.365homenet.com

---

Dont Just GET THE DEED - The Infamous Kitchen Table Closing

Q: Hi Lou, I have a property under contract that... Read More

Selling Investment Houses: Props & Profits

New Marketing and Design Psychology ideas help you stage homes... Read More

Real Estate Investing By The Numbers

Just like most things real estate investing can be broken... Read More

The Professional Investors Plan

The art of using high-leveraged activities.Here I would like to... Read More

Investor Banned From Offering Property For Rent

Do you realize that you might be prevented from renting... Read More

Rehab Your Way to Wealth: The Quick Way to Fixer-Upper Success

Completely rebuilding a house is not necessary to make money... Read More

Real Estate Professional in the Palm of Your Hand

GETTING THE MOST FOR THE LEASE-TRACKING YOUR REAL ESTATEIf you... Read More

Investment Real Estate: An Inexpensive Way To Get Started

If you are considering getting involved in investment real estate,... Read More

Real Estate: Financial Considerations $$$

Raw land as opposed to improved property is much more... Read More

Kings Bay Georgia Real Estate - An Amusing Tale About a Real Estate Agent

This story is true and not meant to hurt anyone,... Read More

French Property - a Buyers Guide to Purchasing Property in France

The CompromisThis document is the document you will sign agreeing... Read More

Fixing Houses: Using Psychology for Profits

Real estate investors who specialize in fixing houses for profit... Read More

Vacation Homes Are Becoming A Reality For More Homeowners

Whether it's a lakefront cottage or a log cabin in... Read More

Fixing Houses: Mixing Your Own Paint for Savings and Harmony

To make the maximum profit on your investment properties, you'll... Read More

An Often Overlooked Secret of Marketing and Negotiating for Real Estate Investors Looking for Deals

When you call sellers, what do you say? When you... Read More

The Value of Building Home Equity

There are numerous advantages to owning a home. One of... Read More

Finding Structural Problems During Escrow ? Small Rural Home Example

In rural home purchases, the transaction is often subject to... Read More

Real Estate Development Feasibility Study (Income) - $1.2 Billion Developer Tells You How To Do One

There are two sides to a feasibility study and in... Read More

Landlording And Other Aggravations

Here's the gripping story...You are the landlord of a small... Read More

Donald Trump on Real Estate

I love what Trump says about the business of real... Read More

Investing in Real Estate & REITs

Real estate investing runs the gamut in terms of risk... Read More

Why I Love Country Living

As somone who has lived in both places, I can... Read More

Quality of Life in Sussex County Delaware. Facts, Statistics, Observations and even opinions!

We Sussex Countians are fortunate in many ways as we... Read More

Buying To Let Top Ten Tips

Buying to let is considered a serious investment and should... Read More

Give Your Home A Timeless Feel

In the world of real estate, there is a huge... Read More

Selling Houses: Design Psychology and Interior Colors

Interior colors are vitally important to selling your home quickly,... Read More

Buying Houses at Discount Prices

Buying a house is the best way you can create... Read More

How Professional Property Investors Interpret and Use Capital Growth Statistics

Understanding and using yearly price growth statistics in an area... Read More

Why Not To Invest In Bulgarian Property

According to research carried out by the Thomson Group, owning... Read More

Seven Questions You Should Ask When Buying a Condo Hotel Unit

You may have heard all the buzz about the newest... Read More

10 Important Tips to Successful Real Estate Investing

When it comes to investing, everybody has certain goals and... Read More

Real Estate Investing: Beware of Subject To Promises

Another real estate writer's mini course, full of promises and... Read More

Fixtures

Fixtures, related to real estate, are items that were originally... Read More