The Good And The Bad When Foreclosure After Bankruptcy Happens

This article discusses what happens when a foreclosure occurs after a bankruptcy.

It discusses tip and tricks to make it easier and how to avoid wounding your credit further.

Of the many possible events, there is only one thing that you as a homeowner really want: have a new home with no more debts to pay. This is why when you are facing impending foreclosure, it is best that you file for Chapter 7 Bankruptcy.

Many people do not know about Chapter 7 bankruptcy, so here is the general idea.

This chapter allows you to basically have what you want as a homeowner facing foreclosure. It allows you to save enough money to find yourself a new home while at the same time be free of the debts that you have secured with your (old) home.

When you file for Chapter 7 bankruptcy, you should be fully aware that there is foreclosure after bankruptcy filing. You can not escape foreclosure through this chapter. To give you specific details on how Chapter 7 bankruptcy can help you, here are the expounded facts:

How can you save money through the chapter?

Many homeowners who do not know about Chapter 7 bankruptcy and got foreclosed often come out with new wounds to add to their old ones. Under the protection of this chapter, you will be automatically be given time to live in your home for free while the bankruptcy is pending.

Not just this but sometimes, the length of time that you are given to live for free in your home is extended way beyond after your case is closed.

With the length of time that you spent living off for free in your home, you will be able to save money enough to get you a new shelter for your heads. Not just this but with the given time, you can use the time to settle your accounts with your lender. Usually, the time that the court takes for it to review your filing of bankruptcy is around 2-3 months.

How can you be given a fresh start by Chapter 7 bankruptcy?

When you file for bankruptcy under this chapter, all of your debts, home equity loans and mortgages will automatically be cancelled. Upon filing, the court will have your accounts reviewed to see if whether or not you really are on the verge of bankruptcy. The main purpose of the review is to check if you still have funds in which you can use to pay off your debts or just enough to live.

To explain in simple terms, think of it this way: how can a person with no money pay off his debt? An individual who has just enough money to buy food would not have extra money to pay the money he already owes. By approval of the court of your bankruptcy through this chapter, your debts and all other financial owing will be defaulted; hence, you will have a fresh start.

Is there a problem when foreclosure after bankruptcy happens?

The answer to this is “yes”. When foreclosure after bankruptcy happens, you have to be aware of one main impending problem: difficulty in buying a new home. Since your bankruptcy will be reflected under your debit reports for up to 10 years, you will find a hard time in getting a seller into selling you his home. When faced with this problem, the best thing that you can hope for is to rent a house or an apartment.