Can Filing Bankruptcy Stop Foreclosure?

All right somebody out there is saying “I’m open minded but just so confused I don’t understand what to do?” It’s highly possible that you are reading this because you’ve been forced into these foreclosure procedures and pondering “Can Filling Bankruptcy Stop Foreclosure?” Well let’s get real for a moment.  You’re trying to do a bankruptcy to avoid foreclosure.

If filing bankruptcy is the first thing you’re doing to stop your foreclosure then you just may be passing up some very powerful alternative solutions.  I just found a great blog post on Bankruptcy Alternatives that I find to be very informative if you’re trying to do a bankruptcy to avoid foreclosure. 

Also I strongly suggest you read the post I just wrote about the Amazing Tips to Stopping Foreclosure.  You could very well be missing out on some tremendous and powerful solutions offered there as well.  

Jim and Carol where asking this question.  They kept hearing that bankruptcy is an option.  They called up their lawyer and asked him, “Can Filling Bankruptcy Stop Foreclosure?”  Well unfortunately the lawyer didn’t fully understand the foreclosure procedures in their state.  He didn’t know bankruptcy to avoid foreclosure is basically foolish.

I’ve stressed over and over about the importance of getting the right kind of help and support to assist you as you navigate through the foreclosure procedures.  You certainly need to know the best steps to take.  Trying to do a bankruptcy to avoid foreclosure is not the best step to take.

If you’ve asked a lawyer “Can Filling Bankruptcy Stop Foreclosure?” and he said yes then you need to press further with your questions and ask just how will it stop the foreclosure procedures the bank or lender is taking against you.

One minute you hear that filing for bankruptcy will assist and help you stop foreclosure.  The very next  minute you hear the exact opposite.  So which one is it?  Will filing for bankruptcy help or will it hurt when it comes to stopping foreclosure? 

Recently I read all about a couple who were musing about this question.  “Can Filling Bankruptcy Stop Foreclosure?”

I’m sure you can imagine the frustration they were in.  They thought filing for bankruptcy would stop the forced sale of their dwelling by the bank.

However they found out way too late the distressing facts.  It simply paused the bank’s actions for about two hours.  And after that they got right back on performing their step by step foreclosure procedures. 

By the end of the day their house was sold. Can you imagine? All they really got out of it was a bankruptcy against their credit file for ten long extended years. 

So let me take a few minutes to help clear up the chaos. I’m quite certain you would appreciate learning more about bankruptcy as well as the foreclosure procedures for your state. I’ve made available for you right here on this blog a free download called the Free Foreclosure Report.  It will help you become aware of the foreclosure procedures in your state.

To me the real question you might be asking is “What does bankruptcy mean?“ Bankruptcy is a process designed and administered by the federal courts to assist people in eliminating their debts.  So if you’re wondering “Can Filling Bankruptcy Stop Foreclosure?”

The answer is “if you’re trying to eliminate the house as a debt then yes.” But then the next reality you must face and ask yourself is “Can Filling Bankruptcy Stop Foreclosure and still save my house?” Well if you can eliminate the house as a debt that is one thing. 

However it is much harder to eliminate the house itself. In other words if you’re asking your self “Can Filling Bankruptcy Stop Foreclosure?” then you must also ask your self, “Will I still be able to keep my house?” What bank or lender is simply going to say, “Okay you’ve filed bankruptcy so you don’t have to pay your mortgage?

There is one thing filing bankruptcy will do for you.  It will allow you to arrange to repay your debts while under the shelter of the bankruptcy court.  

Frankly, I feel this is the one and only way it should be utilized. I don’t think it is an effective in ending the foreclosure procedures against you or abruptly bringing your foreclosure to a halt. 

It is arranged to give relief from debt collection or grant opportunity for one to pay off debts over set period of time. Let me share this with you in case you’re one of those wondering “Can Filling Bankruptcy Stop Foreclosure?”

Most times bankruptcy is described as “restructuring” or “reorganization.”  Well you’re asking what does that really mean? This means the partial sale of some of your financial holdings will take place to pay down some of the debt. 

In other words eventually the bankruptcy court may want you to sell your house to pay your bills. So “Can Filling Bankruptcy Stop Foreclosure?” Well yes, if you’re prepared to do what might be best anyways which is sell your house.

One should not enter bankruptcy thinking that they are not going to lose anything.  By filing for bankruptcy you are admitting that you are unable to pay your bills. By that admission you essentially throw yourself at the mercy of the court, saying take my assets and use them to satisfy my debts.

The court reserves the right to thoroughly examine what you possess, how much money you have and how much money you are making. And yes of course, this action of filing bankruptcy for liquidation purposes will have a negative impact on your credit for ten years. 

Unfortunately there is simply no way of escaping that.  So I encourage you to consider quite carefully whether or not this is an option that is suitable for you. How will filing for bankruptcy help? Bankruptcy establishes an “automatic stop” of all legal actions as soon as you file.

This automatic stop or stay prevents most creditors from taking further actions to force collection of the debts you owe them. The only way a creditor can collect or successfully proceed with action against you is if the power of the court lifts the automatic stay.

Many times the foreclosing attorney will simply go down to the court house and get that automatic stay lifted as soon as your bankruptcy gets filed. Maybe now you’re no longer asking “Can Filling Bankruptcy Stop Foreclosure?”

Instead your wondering how can I really stop the foreclosure procedures the bank or mortgage company is taking against me.

What is the primary difference between Chapter 13 and Chapter 7 downfall?

Chapter 13 bankruptcy:  In this case you make and file a repayment plan with the bankruptcy court to pay back your creditors in a pre-ordained fixed period of time. Exactly how much you will have to pay periodically is established by how much money you make, how much debt you have and how much property you own.

Chapter 7 bankruptcy is a little different: You would request that the bankruptcy court cancel or discharge most of the debts you owe.

You would agree that if the bankruptcy court erases or discharges these debts, the bankruptcy trustee can seize any belongings you own as long as it is not free or exempt from collection.

The court can proceed to sell these, and use the revenue to pay your creditors.  You must always remember that when you file bankruptcy you essentially give away a vast portion of your power and authority over the property to the bankruptcy court or trustee.

What will I have to give up and lose if I file for bankruptcy? In most cases you may be able to file for an exemption and protect up to $17,425.00 of the equity in your home based on a homestead exemption. 

It varies greatly from state to state.  In this declining market there will also be a variation as to the amount of equity you have left in your home. Some states maintain no homestead exemption; others allow debtors to protect all or most of the equitable value in their home. 

To really know for sure you will have to lookup what the law says for your state.

• Insurance: Most times you will be allowed to hold all the cash value of your savings.
• Personal resources: Your personal belongings are safe.  These items include personal possessions, effects, furnishings, clothing (except furs), appliances, books and musical instruments.
• Jewelry: You might be able to keep jewelry worth up to $1,000 or so. In numerous states you get to keep a vehicle with more than $2,400 of equity. And some states award you a “wild card” amount of money – numerous times $1,000 or more – that you can pay towards any property.
• Retirement plans: Most pensions are protected (this qualifies under the Employee Retirement Income Security Act (ERISA)) Also protected are numerous other retirement benefits; However IRAs and Keoghs are usually not. P
• Public benefits: You might certainly get to keep all public benefits; for instance, welfare, Social Security, and unemployment insurance. Accessories or paraphernalia worn on your location of labour.
• Most likely You’ll get to keep up to a few thousand dollars worth of the tools obligatory for your job or profession.  Some states resolution let you protect up to 75% of income that you have worked for but haven’t received as yet.

Will bankruptcy work to halt a foreclosure? Well that is really the same question as “Can Filing Bankruptcy Stop Foreclosure?”  It really does rest on on certain unique factors. A house is an asset that is usually secured by a deed of trust.

The lender has the right to apply to the court for relief from any automatic stay placed on their actions due to the bankruptcy filing. Depending upon several factors, you may be able to string out a foreclosure until you have received your release from liquidation. 

Usually, to maintain a residence that is in foreclosure you will have to create a deal with the lending company. However ,here is what is most important – you cannot get off with not paying the mortgage company.  You must go on to arrange to pay up your arrears and pacify the lender’s demands. 

So filing for bankruptcy is surely like putting a very expensive but immature and ineffective bandaid on a huge wound. The truth is that most times filing for bankruptcy can create for you a little period of grace time. 

If But negotiations should still be made by you or on your behalf with the lender to permit you to keep your home by way of the submission of a hardship letter and so on. In extreme cases those who file bankruptcy in an attempt to save their home end up regretting this action. 

In actuality filing bankruptcy removes your leveraging power and gives it to someone else.  You really want to stay in control of your family home and you equity.

Can the bank get around a bankruptcy filing? As mentioned earlier most times a creditor can get around the bankruptcy filing altogether by asking the bankruptcy judge to remove the stay. 

This is especially true if it’s use is being misused or if it is not serving its intended purpose.  For instance, suppose you file for bankruptcy on the day your house is to be sold in a foreclosure auction.

Clearly, you have no principled value or equity remaining in the dwelling, you are unable to pay your mortgage arrears, and you have absolutely no way of maintaining the monthly payments on the property.  And this is why bankruptcy to avoid foreclosure doesn’t usually work. 

You have simply filed for bankruptcy as a means of stalling the operation so you can get to stay in the house longer.  The foreclosing creditor’s lawyer can just run to the court immediately after you file for bankruptcy and ask consent to go ahead with the foreclosure.  Usually that allowance is quickly given them by the governing court.

Benefits of filing Bankruptcy to Stop Foreclosure The Foreclosure action will be temporarily suspended. Liabilities of filing Bankruptcy to Stop Foreclosure

• There will be a bankruptcy on your credit record for 10 years.
• The Mortgage Company can work around the Bankruptcy and still foreclose.
• You lose any leverage and lead you previously had.
• A deal must still be worked out with the Mortgage Company to settle the defaulted due amount. 
• If you are one day late on any trustee payments, your case “may” be dismissed, the stay lifted, and you will be back in Foreclosure.
• Most people feel bad about having used this routine to save your home because it doesn’t work to save their home in the long run.

So to answer the question “Can Filing Bankruptcy Stop Foreclosure?” more emphatically, I’ll say this.  If you want to simply pause the bank or lenders actions while they go through the formalities of the foreclosure procedures then file for bankruptcy. 

But know that it won’t get you very much. Now I have to say that I am not an attorney and in no way am I proposing to be giving you legal advice. 

I am merely offering some ideas to think about and only explaining how Bankruptcy may impact your foreclosure situation in my view. I encourage you to consult a local lawyer to discuss your case as it concerns Bankruptcy. 

Now if you really want to solve your foreclosure problem and stop if once and for all then I encourage you to consider negotiating for a loan modification.  A loan modification is a powerful solution that can stop the foreclosure procedure against you and create for you a brand new financial future in your house. 

Through a loan modification you can negotiate with the lender or banker to arrange to get the following:

• your arrears tacked on at the back end of your mortgage
• additional time to pay your arrears by following a structure repayment plan where you pay a small amount each month
• a total and complete refinance where you simply get a new loan
• a lowered monthly payment that is easier to manage each month
• a forbearance or time to get your situation caught up during which you won’t have to pay anything at all for a fixed period
• a deed in lieu of foreclosure where you simply turn the house keys over to the bank and they cancel the loan and any foreclosure procedures against you and promise not to ruin your credit. 

Now I know this sounds fabulous and many of you may really want one or more of these solutions.  But there’s a big catch here that I must tell you about.  The catch is that getting a loan modification is not the easiest thing in the world to do. 

It takes knowing how to approach and talk to your lender and understanding the foreclosure procedure and knowing the right words to say. 

Many have tried to contact their lender while in foreclosure and have run up against brick walls.  These people simply do not want to talk to their clients while they are in foreclosure.  If you are behind on your loan you may find it incredibly difficult to get the attention and listening ear of the banker or lender.

Furthermore being able to get in front of the right person who can actually do something about your case is not always easy. 

So this is why the Foreclosure Doctor Online has partnered with the Loan Negotiator Group.  They are a power organization comprised of experienced business professionals who know and understand the foreclosure law and procedure in your state. 

They have a reputation of being fast and effective.  They are able to get you the results you need and save you the time, energy, stress, and money it will cost you to attempt to get a loan modification yourself and then just fail.

So here is what I want you to do.  Contact the Loan Negotiator Group today and get your Loan Modification file started.  Simply click on any of the links on this post or at the top right hand side bar of the blog that says Loan Negotiator Group. 

Make sure you fill out both the short and the long questionnaires completely.  Someone will contact you shortly after you complete the questionnaire.  They will listen to your story and work with you to create and present a powerful strategy to your lender. 

They have experienced much success getting a loan modification from banks and lenders and many are coming away with a smile on your face.  So click on the link right now and get started getting a loan modification right now. 

The Foreclosure Doctor (Online)