Both types of personal bankruptcy – Chapter 7 and Chapter 13 – will place an immediate stop on foreclosure actions.
- The stop in Chapter 7 is only temporary, sometimes as short as three weeks, but it will give you a chance to decide what to do.
- In Chapter 13, filing bankruptcy places the foreclosure on automatic stay while you reorganize your debts, get your payments back on track, or, if you choose, give up the house..
There was a time when people filing for bankruptcy wanted to save their homes, but that is not always the case in an economy where housing values have dropped dramatically. Bankruptcy can be a time to reassess your priorities regarding real estate. Do you want to stay in a home that is “upside down” or “under water?” A home where you owe far more than the house is worth?
Bankruptcy gives you the time to determine your best options.
- In Chapter 7, the temporary stay can give you time to save money to move to a rental property.
- In Chapter 13, you will have time to renegotiate your loan, determine a plan to pay back payments and go forward in paying regular payments.
- You also have the option of giving up the house.
Discuss your options with an experienced bankruptcy attorney.
Filing for bankruptcy slows down the process and gives you time to save money and make decisions that are right for you financially. Ask for a free consultation with bankruptcy lawyer Brian Blum at the Rosenstein Law Group. Contact us for an appointment.
