Becoming Who You Want To Be

Sometimes people have to choose between filing bankruptcy or letting their mortgage lender foreclose on their property. Decision-making is not just a matter of yes or no, it is not that simple. A mortgage lender will file a foreclosure action when the homeowner has not paid his monthly mortgage payments. The best way to prevent this action would be to pay the holder of your mortgage. A mortgage loan can be compared to a car loan which if not paid back on time, the car could go for repossession. It will be the same for anyone who has not paid his mortgage, the bank will foreclose on the house.

A legal action filed by somebody who is unable to pay his debts is called as bankruptcy. If the debtor is in bankruptcy then all the civil proceedings to collect debts are stopped. A mortgage lender must stop all legal actions, including foreclosure proceedings. The mortgage lender can apply for relief from the automatic stay. When it is granted, then the lender can proceed with the foreclosure. Declaring bankruptcy will not halt foreclosure and you still must repay your loan. Bankruptcy may make your financial problems easier to handle, but it will not make them completely go away.

While bankruptcy doesn’t stop foreclosure, it gives a person time to repay or at least makes it easier to repay a mortgage lender. Because bankruptcy forces a mortgage lender to stop the foreclosure proceeding, it gives the debtor additional time to come up with funds to repay the lender. Discharging unsecured debts through bankruptcy may enable you to have more money to pay the mortgage payments.

If you’ve looked at all other options, don’t just give up your home. Consider filing bankruptcy and give yourself a chance to pay back your debts – on your time schedule. A Chapter 13 bankruptcy is a court ordered payment plan and allows a debtor to pay the mortgage catch up amount over a period of time.

Unfortunately, not everyone qualifies for bankruptcy and if they do qualify, there are legal fees to pay. The amount of money you need to get your mortgage payment current may be nothing compared to the legal fees you will have to pay. If you are considering that declaring bankruptcy may benefit your situation and help you get out of a foreclosure, see a lawyer. A good bankruptcy lawyer should be able to answer your questions. Bankruptcy is so detailed that you should not try to handle it by yourself.