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Should I file bankruptcy to avoid foreclosure?

Posted on: 24th Dec, 2006 07:36 pm
I missed a couple of payments since the few months. The lender send us notices and also called up a few days back. He insist on doing a foreclosure. Do you think I can avoid it filing a bankruptcy?
You can file bankruptcy and avoid foreclosure. But its risky!!
Posted on: 24th Dec, 2006 08:28 pm
Welcome Caitlyn.

Filing chapter 7 will also put a stop to foreclosure proceedings.
Posted on: 24th Dec, 2006 08:47 pm
Hi Caitlyn,

Filing chapter 7 will no doubt stop foreclosure but it's temporary. As soon as the court gives the permission, the proceedings will start off.

I think filing Chapter 13 is better as it will give your creditors the impression that you have at least tried to pay a portion of your debts. And, it will also have a lesser negative impact on your credit report as compared to Chapter 7.

Thanks
Posted on: 24th Dec, 2006 09:32 pm
caitlyn, you could file bankruptcy, but inevitably you will still lose your home if you do not make the payments. your best option would be to refinance. your interest rate would probably be higher than what you're currently paying, but if you have equity in your home we may be able to cash-in on that equity and avoid foreclosure by writing you a check for it.
Posted on: 26th Dec, 2006 04:22 pm
Hi Clowery,

Welcome to our forums.

Thanks for your suggestions. Hope you enjoy participating in our forums. :)

Thanks,

Caron.
Posted on: 26th Dec, 2006 09:11 pm
yes you can file bankruptcy, but in the end you can lose your home if your not able to make payments..
filing bankruptcy is just a temporary way to avoid and stop foreclosure..
Posted on: 14th Apr, 2009 10:26 pm
Hello:
I am seeing many people say you may still loose your home if you file what is the time frame. I have a lot of equity but not enough time to the lender work with me. If I file bankruptcy how long do I have and if I accumulate the money will I get to keep my home? Is there a bankruptcy that allows you to keep the home even if you pay what is owed? I will be able to catch up the payments but not in the lender has already started foreclosure and is being very harsh. Not sure if they are trying to scare me or what. Since I do have so much equity I would hate to loose it. I have already tried to work out a repayment plan, loan modification, or asked to be allowed enough time to sell it and the lender says no. I missed one payment on my repayment plan and they proceeded with foreclosure and actually even return any calls, etc.
Posted on: 02nd Sep, 2009 10:46 pm
Welcome mrl,

What type of bankruptcy are you trying to file? If you file Chapter 7 bankruptcy and reaffirm the mortgage, then you won't lose your home. However, you will have to make your loan payments. If you do not pay off what you own, you would not be able to save the property. The lender will foreclose it and recover his dues.

Did you ask your lender as to why he is not ready to give you a loan modification?

Take care
Posted on: 04th Sep, 2009 02:09 am
Posted on: 04th Sep, 2009 05:51 am
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