How Bankruptcy Can Stop Foreclosure
Facing a foreclosure on your property is never an easy pill to swallow. You want to do whatever is possible to save your home for your family. If you cannot work out anything with the lender to allow you to keep the home, it is important to know how bankruptcy can stop foreclosure in Georgia. Bankruptcy is something people do not like to think about, but when the alternative is having to live on the streets, taking a hit on your credit is a small price to pay for the security that only a house can provide your family.
Stopping Foreclosure with an Automatic Stay
As soon as you file for bankruptcy there will be an automatic stay issued to the creditors on your case. This includes the mortgage company. Whether you are filing for Chapter 7 or Chapter 13, this is how bankruptcy can stop foreclosure in Georgia at least temporarily. You will be able to be in your home while the bankruptcy proceedings are carried out. This will include having to go through a motion to life the stay that a creditor can possibly bring against you. Whether or not they will be able to be successful is another story. Bear in mind, the kind of bankruptcy you file will have a lot to do with what happens to your property.
What Chapter 13 Does to Help
Many who would like to keep their home decide to file under Chapter 13. How bankruptcy can stop foreclosure in Georgia in this case is by making it possible for you to restructure your payments to the mortgage company or at least set up a system under which you will pay off the past due amount while making normal payments to your original agreement. This will require that you make enough income to actually be able to make the payments and satisfy other debts.
What Chapter 7 Does to Help
Chapter 7 is filed when you are looking to get the rest of your debt out of the way. How bankruptcy can stop foreclosure in Georgia in this regard is that it will allow you set up a new agreement with your creditor by showing that you will now be able to pay your mortgage since you will no longer have to deal with the debt that was holding you back from before. Take caution if you have other property which will be considered as non-exempt as you may lose valuables that will be applied to pay off other secured debts.
Consider Bankruptcy’s Effect on Your Credit
In considering how bankruptcy can stop foreclosure, it is important to decide whether you need to hold on to the property. This is important to decide because your credit will take a huge hit from a bankruptcy. If you still cannot make the payments than your home will be foreclosed on anyhow and you will lose the property regardless. In addition to losing the home, you will now have a black hole on your credit score. Make sure before moving forward that you will actually be able to pay the mortgage payments or do not move forward at all.
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