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Rep. John Conyers, Jr. (D-MI) chair of the House Committee on the Judiciary and Congressman from Detroit, recently sponsored legislation to change the bankruptcy laws and help stop foreclosure. HR 200, the “Helping Families Save Their Homes in Bankruptcy Act of 2009,” includes several ideas similar to President Obama’s stimulus plan. Have you been affected by the foreclosure crisis? We want to tell you story. Visit FightingForOurHomes.com. Produced by Brave New Foundation.
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Bankruptcy Foreclosure Help
If you are facing foreclosure and cannot work out a deal or other choice with the lender, bankruptcy may help. If you get behind on your mortgage payments, a lender may get steps to foreclose, that is, impose the terms of the loan by selling the house at a public auction and getting payment of your loan out of the auction.
Bankruptcy is a federal court process intended to help people reduce their debts or repay them under the protection of the bankruptcy court. When you file bankruptcy, an automatic stay goes into effect. Declaring bankruptcy might be considered the best option rather than avoiding foreclosure. It has the power to wipe out many of a borrower’s debts while holding other creditors at bay. It can allow a borrower to hold onto main assets such as a home or car, while working out a repayment schedule to get caught up on payments for them.
But a bankruptcy is usually considered a final option for dealing with devastating debt. For one thing, you may have to give up many of your current assets, such as savings and certain investments, in the process. A bankruptcy also has a long-term effect on your credit rating, remaining on your credit report for 10 years; a foreclosure, on the other hand, only remains on your record for seven. However, there are situations when it might make sense to declare bankruptcy in order to keep on to a home in which you’re emotionally and financially invested.
The very thought of foreclosure and bankruptcy is enough to give most people the chills. Bankruptcy and foreclosure both have overwhelming effect on your credit and can cause you to lose your job, break apart your family and deprive your dignity.
Bankruptcy may be an alternative to stop foreclosure and keep your home. Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately prevents all of your creditors from seeking to accumulate debts from you including your mortgage, at least until your debts are sorted out according to the law.
Chapter 7 does not permanently stop home foreclosure. It only provides you relief from unsecured creditors like credit cards and protects certain creditors from pursuing collection action against you. It does NOT discharge debts such as taxes, child support, alimony or student loans, nor can it provide you relief from other secured creditors, like your lender whose debt is secured by the home you’re living in. In fact, the automatic stay is only useful so long as the court wants it to be in place. At any time the court can grant your lender’s motion for relief from the automatic stay. Once the court grants that motion the foreclosure against your home can proceed to conclusion.
If you have maintained to stay current on your mortgage payments but have not been able to keep up with other debts, bankruptcy maybe more applicable, as you will likely be allowed to keep your home. If your main debt problem is your mortgage, you may be unable to avoid foreclosure but could probably avoid declaring bankruptcy. However, note that this depends on your home equity and income; not everyone is capable for bankruptcy protection, even after foreclosure. For more support on how to file bankruptcy, visit www.onlinebkassist.com.
Steve Young is the author of The #1 Secret On How To File Bankruptcy. To get your free CD on How to File Bankruptcy Without an Attorney, go to http://www.onlinebkassist.com
Article from articlesbase.com
Related Foreclosure Help Articles
Bankruptcy Foreclosure Help
If you are facing foreclosure and cannot work out a deal or other choice with the lender, bankruptcy may help. If you get behind on your mortgage payments, a lender may get steps to foreclose, that is, impose the terms of the loan by selling the house at a public auction and getting payment of your loan out of the auction.
Bankruptcy is a federal court process intended to help people reduce their debts or repay them under the protection of the bankruptcy court. When you file bankruptcy, an automatic stay goes into effect. Declaring bankruptcy might be considered the best option rather than avoiding foreclosure. It has the power to wipe out many of a borrower’s debts while holding other creditors at bay. It can allow a borrower to hold onto main assets such as a home or car, while working out a repayment schedule to get caught up on payments for them.
But a bankruptcy is usually considered a final option for dealing with devastating debt. For one thing, you may have to give up many of your current assets, such as savings and certain investments, in the process. A bankruptcy also has a long-term effect on your credit rating, remaining on your credit report for 10 years; a foreclosure, on the other hand, only remains on your record for seven. However, there are situations when it might make sense to declare bankruptcy in order to keep on to a home in which you’re emotionally and financially invested.
The very thought of foreclosure and bankruptcy is enough to give most people the chills. Bankruptcy and foreclosure both have overwhelming effect on your credit and can cause you to lose your job, break apart your family and deprive your dignity.
Bankruptcy may be an alternative to stop foreclosure and keep your home. Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately prevents all of your creditors from seeking to accumulate debts from you including your mortgage, at least until your debts are sorted out according to the law.
Chapter 7 does not permanently stop home foreclosure. It only provides you relief from unsecured creditors like credit cards and protects certain creditors from pursuing collection action against you. It does NOT discharge debts such as taxes, child support, alimony or student loans, nor can it provide you relief from other secured creditors, like your lender whose debt is secured by the home you’re living in.
In fact, the automatic stay is only useful so long as the court wants it to be in place. At any time the court can grant your lender’s motion for relief from the automatic stay. Once the court grants that motion the foreclosure against your home can proceed to conclusion.
If you have maintained to stay current on your mortgage payments but have not been able to keep up with other debts, bankruptcy maybe more applicable, as you will likely be allowed to keep your home. If your main debt problem is your mortgage, you may be unable to avoid foreclosure but could probably avoid declaring bankruptcy. However, note that this depends on your home equity and income; not everyone is capable for bankruptcy protection, even after foreclosure. For more support on how to file bankruptcy, visit www.onlinebkassist.com.
Steve Young is the author of The #1 Secret On How To File Bankruptcy. To get your free CD on How to File Bankruptcy Without an Attorney, go to http://www.onlinebkassist.com
Article from articlesbase.com
Can Bankruptcy Stop Foreclosure
Can Bankruptcy Stop Foreclosure
Bankruptcy to stop foreclosure is possibly the least-understood and least-desired option for most homeowners, although it can provide them with the last chance they need to be able to save their homes. The drawbacks to bankruptcy are widely discussed and raise serious concerns for foreclosure victims who want to preserve as much of their credit as possible, but this option can also provide homeowners with a last chance that is not present in other solutions to foreclosure.
Bankruptcy can be used to set up a repayment plan that allows the homeowners to repair their credit and get back on track with their debts. Although it is usually an expensive payment plan, homeowners who have repaired their financial situations may be willing to pay more every month to fulfill their mortgage obligations. And once the bankruptcy is completed, homeowners can go back to paying their regular monthly payment without the threat of foreclosure hanging over their heads any longer.
In foreclosure situations, filing bankruptcy will put the entire foreclosure process on hold, which is very important for homeowners when the situation is getting out of control and they are running out of options at the last minutes. When a foreclosure auction is approaching, and there is no other way to stop the sheriff sale, filing bankruptcy will immediately put everything on hold, including putting off the sale of the property. In certain situations, this is the most important aspect of bankruptcy, as it just allows the homeowners to gain a little more time to put together or complete a more reasonable plan to save their homes.
However, there are also valid reasons why homeowners may want to consider bankruptcy to stop foreclosure as a last resort, rather than as their first line of defense. There are numerous methods that are available to stop foreclosure, and working with an attorney to file bankruptcy may not be the most appropriate solution in every case. Foreclosure situations are always unique, and deserve a serious evaluation to determine the best way to save the home.
Filing bankruptcy can be a complex process that is expensive and may not bring about the desired results, in addition to harming the homeowners’ credit. When the homeowners’ finances have not sufficiently improved to the point of being able to afford the repayment plan, the bankruptcy is doomed to failure from the very beginning. Foreclosure victims should not agree to a repayment plan that they know will be unmanageable in the long run, because missing a payment in bankruptcy means that the foreclosure process will start back up.
There is also the possibility of running across an unscrupulous bankruptcy attorney who does not act in the best interest of the foreclosure victims. Horror stories abound of homeowners who paid for the bankruptcy to be filed and the attorney simply did nothing with it, resulting in the loss of the home to foreclosure. Other attorneys have been known to advise clients to continually switch from a Chapter 13 to a Chapter 7 and back and forth over and over again, in an effort to have the clients pay substantially more in fees for each new filing. Although the vast majority of attorneys will act in the best interests of their clients, it is important that homeowners be aware of potential scams, even among bankruptcy lawyers.
Thus, bankruptcy is a solution to foreclosure that most homeowners should examine with a reputable attorney, even if it is just to have a last-ditch effort to stop foreclosure on their homes. Foreclosure victims need to be aware of the implications of filing bankruptcy, and do their best to avoid being taken advantage of by a scam, but this option should not be ruled out entirely. Despite its complexity, drawbacks, and potential pitfalls, filing bankruptcy to stop foreclosure may give homeowners that one last chance to put the foreclosure process on hold for just long enough to find a more reasonable solution.
For more useful information on can bankruptcy stop foreclosure, please visit Debt Consolidation Care.
Kasia writes about financial issues.
Article from articlesbase.com
Find More Stop Foreclosure Articles
Will Filing Bankruptcy Stop Foreclosure
Bankruptcy to stop foreclosure is possibly the least-understood and least-desired option for most homeowners, although it can provide them with the last chance they need to be able to save their homes. The drawbacks to bankruptcy are widely discussed and raise serious concerns for foreclosure victims who want to preserve as much of their credit as possible, but this option can also provide homeowners with a last chance that is not present in other solutions to foreclosure.
Bankruptcy can be used to set up a repayment plan that allows the homeowners to repair their credit and get back on track with their debts. Although it is usually an expensive payment plan, homeowners who have repaired their financial situations may be willing to pay more every month to fulfill their mortgage obligations. And once the bankruptcy is completed, homeowners can go back to paying their regular monthly payment without the threat of foreclosure hanging over their heads any longer.
In foreclosure situations, filing bankruptcy will put the entire foreclosure process on hold, which is very important for homeowners when the situation is getting out of control and they are running out of options at the last minutes. When a foreclosure auction is approaching, and there is no other way to stop the sheriff sale, filing bankruptcy will immediately put everything on hold, including putting off the sale of the property. In certain situations, this is the most important aspect of bankruptcy, as it just allows the homeowners to gain a little more time to put together or complete a more reasonable plan to save their homes.
However, there are also valid reasons why homeowners may want to consider bankruptcy to stop foreclosure as a last resort, rather than as their first line of defense. There are numerous methods that are available to stop foreclosure, and working with an attorney to file bankruptcy may not be the most appropriate solution in every case. Foreclosure situations are always unique, and deserve a serious evaluation to determine the best way to save the home.
Filing bankruptcy can be a complex process that is expensive and may not bring about the desired results, in addition to harming the homeowners’ credit. When the homeowners’ finances have not sufficiently improved to the point of being able to afford the repayment plan, the bankruptcy is doomed to failure from the very beginning. Foreclosure victims should not agree to a repayment plan that they know will be unmanageable in the long run, because missing a payment in bankruptcy means that the foreclosure process will start back up.
There is also the possibility of running across an unscrupulous bankruptcy attorney who does not act in the best interest of the foreclosure victims. Horror stories abound of homeowners who paid for the bankruptcy to be filed and the attorney simply did nothing with it, resulting in the loss of the home to foreclosure. Other attorneys have been known to advise clients to continually switch from a Chapter 13 to a Chapter 7 and back and forth over and over again, in an effort to have the clients pay substantially more in fees for each new filing. Although the vast majority of attorneys will act in the best interests of their clients, it is important that homeowners be aware of potential scams, even among bankruptcy lawyers.
Thus, bankruptcy is a solution to foreclosure that most homeowners should examine with a reputable attorney, even if it is just to have a last-ditch effort to stop foreclosure on their homes. Foreclosure victims need to be aware of the implications of filing bankruptcy, and do their best to avoid being taken advantage of by a scam, but this option should not be ruled out entirely. Despite its complexity, drawbacks, and potential pitfalls, filing bankruptcy to stop foreclosure may give homeowners that one last chance to put the foreclosure process on hold for just long enough to find a more reasonable solution.
Noted Financial Author
Article from articlesbase.com
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Save Your Home Before It’s Too Late: File Bankruptcy to Stop Foreclosure
When it comes to stopping a foreclosure on a home, the last thing that most homeowners want to resort to is a bankruptcy to stop foreclosure. Most homeowners do not fully understand using bankruptcy to stop foreclosure on their homes. In reality, filing bankruptcy to stop foreclosure can give a homeowner they need to save their home. Of course, there are disadvantages to bankruptcy as well, which is why many homeowners do not consider it in the first place. Bankruptcy does offer solutions to the problem of foreclosure, especially if there is no other way to save a home.
Homeowners who stop their foreclosure by filing bankruptcy will actually use the bankruptcy as a sort of repayment plan that will allow them to repair and restore their credit. While it will take time to repair their credit, there is the hope that they will be able to accomplish this through bankruptcy. However, it must be known that this repayment plan will be costly to the homeowner, but the cost will be well worth it to keep your home. Most homeowners will be more than willing to pay a larger sum of money every month as to meet any obligations of their mortgage. Of course, once the bankruptcy has run its course, the homeowner will be able to return to paying their normal monthly payments. Also, there will be no worry of a foreclosure after the bankruptcy is completed. When a homeowner files for bankruptcy during the foreclosure of their home, the foreclosure process will be put on hold. This will allow the homeowner extra time to get their financial affairs in order to prepare for the bankruptcy. Even if a foreclosed home will soon be up for auction, the bankruptcy will halt these actions. This is one of the best benefits of filing for bankruptcy to save your home before it’s too late.
It is wise to keep in mind that using a bankruptcy to stop foreclosure should be a last resort only. When all other options have failed, a bankruptcy to stop foreclosure may be the best option. You will want to work with a good attorney, if possible, if you decide to take the bankruptcy route to give you a higher chance of achieving favorable results. Filing for bankruptcy is an expensive and complicated process and there is always the chance that the homeowner will not get the results that they desire from filing bankruptcy.
Reverse That Foreclosure specializes in providing solutions to homeowners to reverse their foreclosure and meet their real estate needs. Visit http://www.reversethatforeclosure.com for a Free Reverse That Foreclosure Kit.
Article from articlesbase.com
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