Thursday, October 01, 2009
What is bankruptcy?:
Two types of foreclosure bankruptcy:
What is Bankruptcy?
Bankruptcy is a process wherein a person legally declares himself or his business unable to pay outstanding debts. Homeowners keep searching effective ways to stop foreclosure. Losing a home may be quite traumatic but sometimes you have to accept the present situation.
Homeowners file for bankruptcy only when they can’t find any other alternative. You must realize that a bankruptcy entry on your credit record can last for ten years.
Two types of foreclosure bankruptcy
If you’re seriously thinking of filing for bankruptcy, then the two basic types of foreclosure bankruptcy are: Chapter 7 bankruptcy and Chapter 13 bankruptcy. In simple terms, Chapter 7 bankruptcy absolves you of all unsecured credit card debt, while through a Chapter 13; court will structure a repayment plan to your creditors.
Chapter 7 Bankruptcy:
In chapter 7 Bankruptcy, all assets including homes maybe sold to repay debts. This means you will be losing your home to foreclosure permanently. But one major think to remember, bankruptcy court will decide whether or not you are eligible for this type of bankruptcy.
Chapter 13 Bankruptcy:
In this type of bankruptcy, an individual can stop foreclosure without leaving his home. In this type of bankruptcy, the homeowner has to make repayment within three to five years. This filing is ideal for individuals who are having regular income but are suffering from temporary financial difficulties.
Bankruptcy can stop foreclosure but there are some negative consequences that come with it. Many debtors try out-of-court agreement before deciding on filing for bankruptcy.
What is Bankruptcy?
Bankruptcy is a process wherein a person legally declares himself or his business unable to pay outstanding debts. Homeowners keep searching effective ways to stop foreclosure. Losing a home may be quite traumatic but sometimes you have to accept the present situation.Homeowners file for bankruptcy only when they can’t find any other alternative. You must realize that a bankruptcy entry on your credit record can last for ten years.
Two types of foreclosure bankruptcy
If you’re seriously thinking of filing for bankruptcy, then the two basic types of foreclosure bankruptcy are: Chapter 7 bankruptcy and Chapter 13 bankruptcy. In simple terms, Chapter 7 bankruptcy absolves you of all unsecured credit card debt, while through a Chapter 13; court will structure a repayment plan to your creditors.
Chapter 7 Bankruptcy:
In chapter 7 Bankruptcy, all assets including homes maybe sold to repay debts. This means you will be losing your home to foreclosure permanently. But one major think to remember, bankruptcy court will decide whether or not you are eligible for this type of bankruptcy.
Chapter 13 Bankruptcy:
In this type of bankruptcy, an individual can stop foreclosure without leaving his home. In this type of bankruptcy, the homeowner has to make repayment within three to five years. This filing is ideal for individuals who are having regular income but are suffering from temporary financial difficulties.
Bankruptcy can stop foreclosure but there are some negative consequences that come with it. Many debtors try out-of-court agreement before deciding on filing for bankruptcy.
Labels: Bankruptcy can Stop Foreclosure
posted by Avoid foreclosure, We buy houses, Stop foreclosure
@ 10:45 PM
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