Wednesday, January 12, 2011

Delaying Foreclosure through Bankruptcy Filing

Are you having trouble with your house but you have no time yet to resolve the problem? Don’t worry, you have an option now. If you are facing foreclosure and you need more time to combat this challenge, you can try bankruptcy filing. This is how it works. If you file a bankruptcy, all your financial debt collections will be put on automatic stay, included in this financial debt is the foreclosure. That means, all actions must be hold off and no further action should take place. This is actually an excellent answer to the question “How to stop the foreclosure?”. Although this may not completely stop foreclosure, at least you have an ample time to arrange your financial situation in resolving this kind of issue.

The first thing that you are going to do to file for a bankruptcy is to organize your debt information and financial information. Include all secured and unsecured debts, tax returns and deeds to any real estate you own. You may also include car titles and any other loan documents you may have.

Then you can file a bankruptcy by filling up the form. Either you or your attorney can do this. The form basically is for you to declare your financial status and your financial transaction. Feel free to provide as much information as possible. Once you filled up the form, an automatic stay will be implemented immediately. This will enable your protection against your creditors. They are not allowed to harass you or to contact you directly to follow up information regarding your debts. Filing a bankruptcy will enable you to get a chance to coordinate with your creditor in a formal and professional manner. You will get to talk about the situation and to come up with the most viable solution without compromising your house as collateral. This is a good way to negotiate and resolve your foreclosure issue.

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