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Coping With Bankruptcy and Foreclosure Options

By Mark Etinger

Republish: EasyPublish™ Published: 29Jan2012 Word count: 431 Viewed: 66 time(s) Get Free Content For Your Site

Have you been hit hard by the economy? Has your job situation changed and not for the better? There
comes a point when you have gotten a little low and you are having trouble making payments. If you
find that each month's mortgage payments are becoming more and more difficult to send in on time,
then it may be time to seek assistance.

The last thing that you want to deal with is a foreclosure. If you have a mortgage and other bills on your
plate and it's just a little too big to chew it means that you need to take action one way or another.
Filing for bankruptcy is probably the last thing you want on your mind at the moment. However filing for
bankruptcy does not necessarily mean you're going to lose your property and investments.

Chapter 7 bankruptcy is sometimes referred to as liquidation bankruptcy or straight bankruptcy. In these
cases the debtor is asked to turn over non-exempt property to the trustee. The trustee will then convert
some assets to cash to pay off debtors. In some cases the debtor has no assets that could be lost and
therefore will be given a fresh start. It ultimately wipes away the burdens of debts. In cases like this the
debtor will be able to keep their homes, vehicles, and similar investments.

Chapter 13 may be called rehabilitation debt or reorganization debt. In these scenarios the debtors are
allowed to pay off debt over a period between three to five years. The appeal for filing is similar: people
have non-exempt property they want to keep. It is the option for people with steady income who intend
to continue paying off debt, just on a different timeline.

In terms of why these relate to mortgage: filing for bankruptcy may prevent the loss of your home
due to a lack in payments. Chapter 13 is fantastic for those behind on mortgages because it allows
you to make up for missed payments. It also leaves an option for filing Chapter 7 later on. With such
reorganization you can then go to your mortgage loaner and set up a reasonable time frame for paying.
It also prevents you from being harassed by collectors. Once you file for bankruptcy you are protected
from threatening calls and notices. It acts as a buffer so that you can get yourself back on track.

These are two ways to get control of your money before you spiral too far down the drain. Contact a
bankruptcy law firm as soon as possible.

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