| When it comes to foreclosure, some people are not | | | | Bankruptcy will slow the action, but it will not prevent |
| sure whether they should allow that to take place, or | | | | it. |
| just file for bankruptcy. It's important to keep in mind | | | | Benefits of Bankruptcy Filing |
| that the decision is not an either/or decision, and as | | | | Even though it doesn't stop foreclosure, bankruptcy |
| such, cannot be made lightly. | | | | can also be beneficial in that it will allow a person |
| What is Foreclosure? | | | | additional time to make payments, or make it easier |
| An act of foreclosure can occur when the mortgage | | | | to pay the lender. Bankruptcy makes a mortgage |
| lender does not receive the monthly payments they | | | | lender pause in their foreclosure efforts, and a debtor |
| are entitled to. The only way to stop this from | | | | has a little extra time to raise the money. |
| occurring is to pay the mortgage lender. These types | | | | Also, since bankruptcy can discharge some unsecured |
| of loans are like car loans, in which you would lose | | | | debts, a debtor may have more money with which |
| your car through repossession if you didn't pay your | | | | to pay his mortgage payments. Through a chapter 13 |
| bills. Like repossession, foreclosure will take away a | | | | bankruptcy filing, the debtor is able to - through a |
| person's home if they do not keep up with the | | | | court order - pay their mortgage catch up over a |
| monthly payments they owe on their mortgage. | | | | period of time rather than all at once. |
| Can Filing for Bankruptcy Help Then? | | | | Consult Your Bankruptcy Lawyer |
| For people who cannot pay their debts, sometimes | | | | What you must realize, of course, is that there are |
| they file the legal action of bankruptcy. The purpose | | | | legal fees to pay for bankruptcy, and not everyone |
| of this action is to stop all the civil action against the | | | | is eligible to file for bankruptcy in the first place. Legal |
| debtor while the debtor is in bankruptcy. A | | | | bills can be quite high, and high enough that they |
| foreclosure can be halted through these means | | | | outweigh the costs of catching up with the |
| because lender is required to cease all their legal | | | | mortgage. |
| actions against the debtor. Lenders respond by filing | | | | It is imperative to talk over bankruptcy with a |
| for relief from this order, and once they are | | | | knowledgeable lawyer if you are going to attempt to |
| invariably granted such relief, the legal action will | | | | stop foreclosure. Bankruptcy is so detailed that you |
| continue forward and the house lost. | | | | should not try to handle it by yourself. |
| The bottom line is that bankruptcy does not stop | | | | The material offered in this article should serve only |
| foreclosure and it does not allow a debtor to keep a | | | | as a general guide, and for more specific information, |
| house without paying the mortgage lender. | | | | you should contact a licensed lawyer in your state. |