When you’re in the middle of financial challenges, it can feel like you’re in a fog. Everyone around you may be giving you advice, but sometimes the facts are difficult to see and you’re faced with questions that only seem to have complicated answers. Can the bank take your home? Can debt collectors have you arrested? Will bankruptcy be the end of the road for your financial life?
Let’s clear that fog a bit, at least when it comes to bankruptcies and foreclosures. Can a personal bankruptcy stop the bank from taking your home? In many cases, the answer is yes. Of course, every case is different, so here are a few of the facts to be aware of if you’re contemplating bankruptcy:
- Even if the foreclosure is moving forward, filing for either Chapter 7 and Chapter 13 bankruptcies will stop the proceedings, giving you time to breath and formulate a plan.
- In a Chapter 7 bankruptcy, possessions can be sold to pay off debts, so there is a possibility you can lose your house still.
- With a Chapter 13 bankruptcy, on the other hand, you have a greater chance of delaying foreclosure for a much longer period and perhaps forever. That’s because Chapter 13 bankruptcies don’t involve a selloff of property. Instead, you agree to a repayment plan that works for you.
The Law Offices of Patrick Cordero, PA has a wealth of experience when it comes to bankruptcy and foreclosure and may be able to save your home. Our Foreclosure Defense page has more info about filing.