Can Bankruptcy Stop Foreclosure?
Bankruptcy can stop foreclosure but bankruptcy should be the last option to choose to stop foreclosure. Do you know that thousands of people face foreclosure every year and the number is increasing in this recession. There are many ways to stop foreclosure and Bankruptcy is of the ways to stop foreclosure but this should be the last option to save the home form foreclosure.
Filling bankruptcy will stop foreclosure immediately and the entire process will be on hold and this gives the foreclosure victims a little bit of time to reorganize themselves. The foreclosure victims can also pay off their creditors with an affordable repayment plan.
The foreclosure victims also need to know the consequences of filling bankruptcy. This will certainly help then to stop foreclosure but it will also hurt their credit hugely and they may not be able to get approve any long in next 5 years.
If they miss any payment of the repayment plan then the entire foreclosure process will start once again but the fact is when there is no option available Bankruptcy is a great help of the Foreclosure victims to save their home.
Filling bankruptcy is an expensive process but it is better to take help from a reputable Bankruptcy Attorney because there are some attorneys who ask their clients to switch filling chapter13 to chapter7 to get more fees but the reputable attorneys do not do so and give the best possible suggestions to get out of the problem.
At last I would say Bankruptcy is a great relief provided by the Federal government and if there is no options available for you to stop foreclosure, then do not hesitate to file bankruptcy. Bankruptcy is at least far better than foreclosure.