In this day and age, filing for bankruptcy isn’t always a straightforward process. Unfortunately, it can be even more frustrating and confusing if you’re trying to use bankruptcy as a tool to stop your home loan company from going through with the process of foreclosure. If this sounds a lot like your situation, here’s why Chapter 7 may not help you get the job done:
Eligibility Rules
In the process of trying to use Chapter 7 bankruptcy to stop a home Foreclosure St. Paul MN, some homeowners will be dismayed to find out that they don’t even qualify for it. Even though you may be in over your head and unable to make your mortgage payments, you may still be denied for Chapter 7 bankruptcy if you have made more than the median household income in your state for the past six months.
No Lien Erasure
Plain and simple, a Chapter 7 bankruptcy will force your creditors to absolve your debt. However, it won’t be able to help you when it comes to erasing the lien you already have against your home. Consequently, many financially strapped homeowners who choose to file for Chapter 7 bankruptcy end up losing their homes to Foreclosure St. Paul MN in the end. Neither the court nor your creditors are interested in allowing you to keep a home that you didn’t pay for, which means it’s unlikely that you’ll be allowed to keep it.
Putting Possessions In Jeopardy
It’s important to realize that the bankruptcy court isn’t just there to help you. The system is also there to help your creditors recover the money they’ll be losing when you file your petition. Chapter 7 bankruptcy could not only mean losing your home to Foreclosure St. Paul MN, but it could also mean losing other possessions that you love. Since you’re only allowed to keep a certain dollar value where your items are concerned, you could be forced to give up jewelry, antiques, or other expensive property you own.
Chapter 13 bankruptcy is often a better option for those facing foreclosure because it stops foreclosure in its tracks and gives you the opportunity to bring your account current by making up for missed payments. Get in touch with the legal professionals at Lamey Law Firm St. Paul MN today to discuss how they may be able to use bankruptcy help you halt your impending foreclosure and help you get back on your feet. Browse website for more information.
