Those that are wondering how filing bankruptcy will stop foreclosure proceedings should know it is an option, but homeowners that face foreclosure need to seek all options with foreclosure prevention before filing for bankruptcy. The reason for this is simple – not only will bankruptcy stop foreclosure, at least until the discharge hearing, but it can ruin your credit for the next ten years.
Most desperate homeowners that are facing foreclosure think filing a bankruptcy will stop foreclosure hearings, which is only partially true. Sometimes a lender may elect not to be included in the bankruptcy and every situation is different. So the answer to “will filing a bankruptcy stop foreclosure on my home” is not a universal answer, some cases may be “yes” and others “no.”
The other thing to consider is that your credit will be worse after a bankruptcy. Bankruptcy is worse than the foreclosure itself because it stays on your credit bureau report longer. Using bankruptcy as a strategy to stop foreclosure may not be the best option.
Because of recent loan modification programs, the option of short sales, deed in lieu arrangements that can be worked out with your foreclosure lender and other options available to stop foreclosure, filing bankruptcy may not be your only choice to avoid foreclosure and save your home.
If you still have income coming in, the newer bankruptcy laws may give you little relief, except to work out longer payment plans on credit cards, incurring larger interest charges. However, it is wise to consult an expert to help you determine what the best option to help you avoid foreclosure is.
What often happens after consulting a professional is the homeowner no longer has to ask the question, “will filing a bankruptcy stop foreclosure on my home”. Often, there are better methods that allow you to keep your home with a lower monthly mortgage payment to ease cash flow problems and allow you to salvage your credit.
A reputable foreclosure prevention company can also analyze whether it is better to save your home or sell your home, depending on your equity. It is always preferable to hang onto your home until the market is where you can get top dollar. If that is not an option, a personal evaluation can help you make an informed decision, and of course, you can find plenty of free information and articles on the internet.
If you are wondering “will filing bankruptcy stop foreclosure proceedings on my home?” you need to contact known experts in foreclosure prevention to get help in making the right and informed decision to stop foreclosure on your home.
For more information please visit: http://www.floridalawattorney.com
