Bankruptcy To Stop, Avoid, or Prevent Foreclosure

Bankruptcy may help you stop, avoid, or prevent foreclosure. There are two types of bankruptcy that apply to most homeowners. One is called Chapter 7 and the other is called Chapter 13. Depending on your situation, either or both types of bankruptcy may help you stop foreclosure by making it easier for you to pay your mortgage payments or by giving you time to catch up your payments.

In a nutshell, bankruptcy is the legal process of discharging certain unsecured debts so that you will not have to pay them. Secured debts, such as home loans, have to be paid or the lender can seek possession of the property to apply it to the debt that is owed to the lender.

Because bankruptcy (especially a Chapter 7 bankruptcy) can relieve you of having to pay some unsecured debts such as credit cards, you may have more money with which to pay your mortgage payments. With more money, it may be easier for you to make your mortgage payments.

A Chapter 13 bankruptcy is a Court ordered payment plan and can give you time to catch up on your mortgage payments. If you owe four or five months of mortgage payments, you may have several years to catch up by paying a small amount each month.

Bankruptcy is a complex and technical process. If you are considering bankruptcy as an option to stop foreclosure, I recommend that you talk with a lawyer licensed in your state. A good bankruptcy lawyer will consider all of your situation and explain why or why not bankruptcy will help you stop or avoid foreclosure.

This website, Stop Foreclosure - Five Options You Need To Know, is to help you understand the options (bankruptcy to stop foreclosure and others) available to you to stop or avoid foreclosure in your situation. You need to beware that not every option is available in every situation. An option that works in one situation may not work in different situation. See stop foreclosure options to help you understand the options available to you to stop or avoid foreclosure in your situation.