Filing For Bankruptcy Before or After Foreclosure

badmin

10 years ago

foreclosure, bankruptcy, As an individual that has run into dire financial difficulties and also being a homeowner naturally your first concern is going to be what is going to happen to your home. You may be on the brink where foreclosure is going to take place and you are trying to decide whether you should go bankrupt before the foreclosure becomes a reality or whether to apply for bankruptcy after the foreclosure action has begun.

One of the factors that will have to be taken into consideration is whether you are qualifying for Chapter 7 bankruptcy or Chapter 13. Ideally if you have reached the point where you have no other resources to count on to help get you on track with your financial situation; you should consider filing for bankruptcy immediately. Speaking with a qualified Houston attorney can assist you with this.

Often what happens is when a house is sold during the foreclosure sale it is sold for less than what is owed. This means that there is a deficiency. Whether the lender of your mortgage can come after you for that deficiency is all going to depend on the state that you live in. In some cases the debts will be cancelled but in that case you might end up owing taxes.

Rather than get into a complex situation; filing for bankruptcy to help you deal with your debts may be your best option. In some cases your home may be exempt or you may decide to relinquish the home. With the bankruptcy laws being so complex you want to make sure that you make the right decision that is best for you and know what your options are. For this reason as well as others you really need to rely on the experience of a professional Bankruptcy Attorney.