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No. People file banktruptcy when they have debts they can not pay back. It is a way for the courts to determine what assets an individual has, the order in which creditors get paid off, etc. A foreclosure is an action that a bank or mortgage company files when a borrower is delinquent on payments. It's a way to bring to the courts proof that a borrower is behind on payments, and giving the bank the right to auction off the house to pay off the loan. Often, though, people file banktruptcy as a way to hold off a foreclosure. However, you still have to make your mortgage payments (or new schedule of payments set up by the bankruptcy court) once the banktruptcy is over, or you risk being foreclosed on.
No, foreclosure is the repossession of specific property you pledged to secure a loan/debt, and typically refers to real estate. Bankruptcy is a legal process that allows a person to reorganize or default on debt, and is something one does that effects most of their financial obligations -- most debts and all assets. There are several different types, called "chapters," of bankruptcy that can be declared; the specific choice would be suggested by your attorney or by the court.
Bankruptcy does not release a person from the obligation to pay back taxes or student loans, or from paying off the balance of any loan reaffirmed (usually a house or car), meaning you agree to honor the original or modified contract with those creditors so you don't have to relinquish the asset.
Bankruptcy may stop foreclosure for a short while, at least. Each action has very bad effects on your financial standing and FICO score, worse than most credit defaults. Foreclosures remain on your credit record for seven years; bankruptcies remain for ten.
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How bad is it to do a foreclosure and a bankruptcy at the same time?
You technically should not be able to do both at the same time. The bankruptcy should stop the Foreclosure proceedings in its track.
Will bankruptcy protect me from foreclosure by my mortgage company?
Yes, bankruptcy protect you from foreclosure by your mortgage company. You can read more at www.hirby.com/mortgage-lender-filing-for-bankruptcy
Bankrupty or foreclosure which is best?
bankruptcy is better. If you have to decide foreclose or banko, put your house in bankruptcy. When you have a foreclosure, they can sue you for the balance
Can I do a Bankruptcy and foreclosure with a second mortgage at the same time?
YOU don't evcer do a foreclosure on what you own. the bank does. Bankrutpcy overrides foreclosure and in fact will essentially delay it while the property is sold in the BK process.
How long will bankruptcy prevent a foreclosure?
Bankruptcy will prevent a foreclosure but you still have to reaffirm the loan and begin paying or the bank will repossess your house regardless of bankruptcy. Bankruptcy temporarily halts the process for up to a couple months.
Does a timeshare foreclosure hurt your credit after a bankruptcy has been discharged?
Any foreclosure or bankruptcy affects your credit. And for anywhere from 7 -10 years.
Can you file bankruptcy on your house if already in foreclosure?
Filing for bankruptcy may enable you to recover your house from foreclosure. However the bankruptcy would entail dealing with your entire debt situation, not just the house.
Who is the saint that protect homes from foreclosure?
Saint Bankruptcy
Will chapter 7 bankruptcy stop a foreclosure in California?
Yes, temporarily. Filing for bankruptcy protects your from collection actions taken by your creditors, including foreclosure during the proceedings.
Do you have to declare bankruptcy if you default on your mortgage?
No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.
Will foreclosure hit credit report after it was discharged at chapter 7 bankruptcy?
Yes, it will show as included in bankruptcy and also foreclosure. You get a double whammy. Sorry probably not what you wanted to hear.
Is bankruptcy better when paying off bills due to a foreclosure?
Bankruptcy should only be a last resort when someone is faced with debt and a foreclosure. Bankruptcy always reflects on someone's records, even when they stumble on new financial opportunities.
