If I Follow Chapter 7, Would That Stop Foreclosure - 4 Things That You Must Know

By Author: J.J. Yong
Total Articles: 963
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When you face home or mortgage foreclosure problems, trust me when I say that you better do something fast or you could end up homeless just like thousands of those before you that have lost their homes succumbing to the danger that foreclosure brings. To stop foreclosure, there are plenty of ways to do it. You could try negotiating with your creditors, or you could obtain help from the government to help you overcome this complication. If all other methods do not work, considering Chapter 7 Bankruptcy might not be such a bad idea after all!

Well, before you end up filing for Chapter 7, there are a number of things that you should know about this method to stop home foreclosure:

1) First and foremost, filing for Chapter 7 does not stop foreclosure completely, it merely postpones your actual foreclosure process, and allows you some time for you to sort out your financial situation and move out of your current home voluntarily without being driven out by your creditors

2) Remember too that you would not be able to save your home once you file for bankruptcy, you would still lose it to your creditors that ...
... would eventually auction your home off to minimize their losses. What you are achieving by filing for Chapter 7 is buying yourself some crucial time (anything between 6 months to three years if you are lucky) for you to re-evaluate your financial situation and start afresh in that sense

3) Filing for Chapter 7 would secure you against the threat of having your former mortgage lender coming after you after the whole foreclosure process is completed and your home is sold to another person. Your previous creditors would also be unable to sue you for any defaulted payments over your old property, an extremely unlikely situation to happen, but it is always better to be safe than sorry! This allows you to carry on in your new life without having to worry about past debts and mortgages, a welcome situation for you if you were indeed entangled in a lot of debt previously

4) And remember that once you are awarded bankruptcy status, you would have to hand in all assets that you have, and start all over again from scratch, speaking from a financial point of view. And also take into account that in the future, the portion when you file for Chapter 7 would always remain a black spot in your credit ratings, which would subsequently affect all future credit applications such as home loans and credit card applications.

To the question of can bankruptcy stop foreclosure, the answer is a no, you would still end up losing your home, but you would save yourself the trouble of facing future complications over your old home, and you could probably look forward to moving on with a new financial start. All the best!
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