At first glance, it may appear bankruptcy and foreclosures go together. But that may not necessarily be the case. Many people who find themselves in this dire predicament often think filing for bankruptcy is their only solution. But if you take the time to get advice from a reputable bankruptcy attorney, you may discover there are many other solutions available. The truth is there are a wide variety of debt negotiations which can help you prevent or deal with a foreclosure, such as debt restructuring and debt management.
If you're going to file for bankruptcy in West Palm Beach, it's important to know what you can expect. Bankruptcy is the process which legally removes your debts owed to a lender. The borrower needs to file for a specific type of bankruptcy, usually either Chapter 7 or Chapter 13. To qualify, the borrower must prove they can't meet their debt while paying for necessities due to low income. To meet the demands of some creditors, the court will decide to sell some of the borrower's possessions. The remaining debt will be discharged and erased from the record of the borrower.
Foreclosures are initiated by lenders which use liens to against the house to recover money from an unpaid mortgage. Foreclosures come in two different forms. The first is judicial in which the court auctions off the home or gives it to the lender. A non-judicial foreclosure places the power on an escrow company which can sell the property and give the money to the lender. Regardless of the method, the borrower is evicted from the property, closing the mortgage account.
If you choose bankruptcy as an option for a foreclosure, the court can allow the borrower an automatic stay. All legal action against the borrower will be halted and creditors will not be allowed to force a repayment. While this gives the borrower some legal protection, there are a couple of important things to keep in mind. Although the automatic stay removes late payments, it does not remove the mortgage and the lender can still maintain their claim on the house for late debts.
Bankruptcy gives the borrower temporary relief from paying off the mortgage debt. However, it can severely damage your credit. It some cases, it can result in credit scores plunging by hundreds of points. It's best to avoid filing for bankruptcy unless you have multiple debts and not just only to avoid a foreclosure.
If you're facing a foreclosure, it's important to hire an attorney who has the experience and knowledge to help you during this difficult time. West Palm Beach bankruptcy law attorney Brian K. McMahon can not only help clients navigate through the bankruptcy process, he also has the knowledge and experience to help those facing a foreclosure. As a skilled negotiator, Mr. McMahon can provide alternative solutions such as reinstating a loan or a loan modification. Call today at (561) 478-2500 and learn what a bankruptcy attorney can do for you.
If you're going to file for bankruptcy in West Palm Beach, it's important to know what you can expect. Bankruptcy is the process which legally removes your debts owed to a lender. The borrower needs to file for a specific type of bankruptcy, usually either Chapter 7 or Chapter 13. To qualify, the borrower must prove they can't meet their debt while paying for necessities due to low income. To meet the demands of some creditors, the court will decide to sell some of the borrower's possessions. The remaining debt will be discharged and erased from the record of the borrower.
Foreclosures are initiated by lenders which use liens to against the house to recover money from an unpaid mortgage. Foreclosures come in two different forms. The first is judicial in which the court auctions off the home or gives it to the lender. A non-judicial foreclosure places the power on an escrow company which can sell the property and give the money to the lender. Regardless of the method, the borrower is evicted from the property, closing the mortgage account.
If you choose bankruptcy as an option for a foreclosure, the court can allow the borrower an automatic stay. All legal action against the borrower will be halted and creditors will not be allowed to force a repayment. While this gives the borrower some legal protection, there are a couple of important things to keep in mind. Although the automatic stay removes late payments, it does not remove the mortgage and the lender can still maintain their claim on the house for late debts.
Bankruptcy gives the borrower temporary relief from paying off the mortgage debt. However, it can severely damage your credit. It some cases, it can result in credit scores plunging by hundreds of points. It's best to avoid filing for bankruptcy unless you have multiple debts and not just only to avoid a foreclosure.
If you're facing a foreclosure, it's important to hire an attorney who has the experience and knowledge to help you during this difficult time. West Palm Beach bankruptcy law attorney Brian K. McMahon can not only help clients navigate through the bankruptcy process, he also has the knowledge and experience to help those facing a foreclosure. As a skilled negotiator, Mr. McMahon can provide alternative solutions such as reinstating a loan or a loan modification. Call today at (561) 478-2500 and learn what a bankruptcy attorney can do for you.
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