Due to the current economic crisis, many homeowners find it hard to make regular payments to their lenders. So many companies are downsizing, leading to an increase in unemployment. Many of those that lose their jobs are homeowners who have a mortgage to pay every month. However, due to the current situation, many cannot make payments and are now facing foreclosure. The government has given an extended period of grace to delay the foreclosure process. If you cannot pay or negotiate a loss mitigation options before that period is over, your home is at risk. So what can you do? Should you give up? No, don’t give up. You can still stop foreclosure and save your home. You can do this by filing for bankruptcy.

So many homeowners have associated negative consequences with filing for bankruptcy. If you adequately research your options, you will out that filing for bankruptcy will add more to you than it will take from you. Filing for bankruptcy has a lesser impact on your credit score than a foreclosure. A foreclosure will not only damage your credit score; it will take your home from you. However, you can save your home by filing for bankruptcy and negotiate a new repayment plan with your lender. You will be able to repay your loan over three to five years with some chapters of bankruptcies. Also, there is a chance of getting rid of all unsecured debts, depending on how you go about it.

Research on different chapters of bankruptcies that are available for homeowners. Chapter 7, chapter 11, and chapter 13 are the most common and effective in stopping foreclosure. They offer fantastic benefits and makes it easy for you to get out of whatever financial difficulty you find yourself. Contact a bankruptcy lawyer today and file your petition.

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