Saving Your House From Foreclosure by Filing Bankruptcy
Posted by | Posted in Foreclosure | Posted on 17-11-2008
When you have defaulted in paying your premiums for the loan obtained, facing a foreclosure and you have no other option left to escape, you may think of filing a bankruptcy claim before the court. The question that haunts you at this juncture is can you save your house from foreclosure?
This leads you to the consequential issue of How to stop foreclosure. You will be surprised to know that filing a bankruptcy claim automatically prevents all creditors from taking any action to collect their dues including the foreclosure. The proceedings that are running in the court of law are automatically stayed in such circumstances.
However, the problem is that the right, title and interest of the mortgage company do not end because of such filing of your bankruptcy claim since you are still a debtor. Moreover, the creditor can also seek the relief from the court when there is potential danger that the secured property value becomes inferior to the total debt that the debtor owes to the creditor. Hence the chapter 7 bankruptcy is only a temporary relief to the debtor from the fears of foreclosure.
You can have a lasting solution to the problem of your overbearing debts if you have filed a chapter 13 bankruptcy under the laws of the land. The foreclosure laws prevent the creditors from taking any action pending the suit.
