Absolutely. Chapter 7 bankruptcy can help you stop foreclosure on its track. It’s one of the most used chapters of bankruptcy by homeowners, and it’s effective at stopping foreclosure. There are so many benefits to using chapter 7 bankruptcy to stop foreclosure and some disadvantages as well. You do not want to be ignorant of these facts. It’s advisable to research it before you file for bankruptcy adequately. Also, make sure to have a foreclosure or bankruptcy attorney with you on your journey to stopping foreclosure. Filing for bankruptcy is a legal process, and you don’t want to do it without a legal practitioner.
It’s normal to be under pressure when facing foreclosure, but you don’t want to make decisions that will harm you later. Be sure to know all the details about chapter 7 bankruptcy before going ahead. Here are some points you should know:
What draws most homeowners to file for chapter 7 bankruptcy is that it can help them wipe out their debts. Most debts fall into this category except for the likes of student loans, which are non-dischargeable loans. The thought of having all your loans forgiven can be appealing, but it does not come without a price. Your properties will be sold to pay off your debts, and other debts not covered will be forgiven. Although some homeowners who file chapter 7 bankruptcy manage to keep their home, it’s not common for that to happen.
Unlike chapter 13 bankruptcy, where you can construct a new repayment plan, and your lenders are forced to negotiate with you, this is not possible with chapter 7 bankruptcy. Therefore, if you plan to get on track with your mortgage payments, filing for chapter 7 bankruptcy is not the best option for you.
Find out more details on chapter 7 or consult an attorney.