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The Process of Bankruptcy to Stall Foreclosure

The Process of Bankruptcy to Stall Foreclosure

: Richard West Law Office

foreclosureAre you tired of harassment from debt collectors hounding you over missed mortgage payments? Are you on the verge of foreclosure proceedings and losing your home? Filing for bankruptcy could help halt foreclosure proceedings and give you the chance to make up missed payments and reorganize your financial life. With guidance from a Cincinnati  bankruptcy lawyer, you might even be able to permanently save your home.

In most cases, filing for bankruptcy gives homeowners six weeks to three months of additional time to get back on track financially. Here’s an overview of the process of filing for bankruptcy to stall or completely halt foreclosure:

  • Motion with the court. Remember, lenders aren’t permitted to foreclose until they have permission from the court. To stop this process, you must file for bankruptcy and understand the options available to you. Chapter 7 is an appealing option, but it usually results in the liquidation of many of your most valuable assets.

Statistics show that most people that file for Chapter 7 end up losing their home. On the other hand, Chapter 13 is more effective at helping people stay and keep their home, since they have the opportunity to reorganize finances.

  • Meeting with a bankruptcy lawyer. By discussing your situation with a Cincinnati bankruptcy lawyer, you will be able to make the most informed decision possible. Whether you’re trying to slow or completely halt the foreclosure process, a bankruptcy lawyer has the insight necessary to help you protect your home.

A prime benefit of filing for bankruptcy rather than foreclosure is a potential tax advantage for homeowners. The forgiven mortgage balance in a foreclosure counts as income, which is considered a tax liability. Discuss these issues and much more by meeting with an experienced bankruptcy lawyer.