| ng can be more disheartening than receiving a | | | | debt or to pay the entire loaned amount. This is |
| foreclosure notice. After all, receiving a | | | | because the Chapter 13 Bankruptcy offers a set |
| foreclosure notice means only one thing: that you | | | | of guidelines both you and your creditor would |
| would be losing your home or any other property | | | | need to adhere to in order to make the |
| you have placed as a form of collateral for a | | | | necessary adjustments on the amount of the |
| mortgage or a loan that you have taken out. This | | | | debt that is still outstanding. In order to become |
| is often brought about by the inability of the | | | | eligible for this type of bankruptcy, however, you |
| borrower to meet the amount of payment that | | | | should be able to provide sufficient proof that you |
| needs to be remitted to the creditor or financial | | | | have enough liquid funds in order for you to apply |
| institution at the schedule that has been agreed | | | | for a Chapter 13 Bankruptcy. This would then |
| upon when the mortgage or loan has been taken | | | | need to be presented to your local court as |
| out. | | | | substantial evidence that given an extended |
| The good news is that there are options that you | | | | period of time, which could range from three to |
| can consider in order to prevent foreclosures to | | | | five years, you would be able to pay off the |
| actually happen. Remember that all you have | | | | outstanding balance on the amount that you have |
| received is just a notice. You are still given | | | | already loaned. |
| sufficient time to work out on what you possible | | | | The second type of Bankruptcy is the Chapter 7 |
| options may be. One way you could go about this | | | | Bankruptcy. Compared to the Chapter 13 |
| is through meeting up with your creditors, | | | | Bankruptcy, the processing of the Chapter 7 |
| especially if the reason for your failure to meet | | | | Bankruptcy is a lot faster. This is a more realistic |
| the agreed payments and schedule is something | | | | option for homeowners have no other choice but |
| that happened beyond your control, such as a | | | | to stall the foreclosure process and paying of the |
| loss of job due to retrenchment or illness. This is | | | | outstanding mortgage you may have. However, |
| because in many cases, creditors and financial | | | | the Chapter 7 Bankruptcy would not be able to |
| institutions would be able to provide you some | | | | provide you the security that you would be able |
| alternative measures and make some | | | | to keep your home. As a matter of fact, when |
| adjustments to prevent the foreclosure from | | | | you file the Chapter 7 Bankruptcy, you would |
| actually happening. | | | | need to come to terms with the fact that you |
| Another option that you can consider to stop an | | | | would not only lose your home, but other assets |
| impending foreclosure is to file for bankruptcy. | | | | that you may own as well. This is because in |
| While this may not look like an option that you | | | | order for you to pay off all of your debts you |
| would immediately want to consider because of | | | | currently have would need to be paid through the |
| how it could affect your financial standing and | | | | liquidation of your assets. The benefit that the |
| status later on in the future, many people have | | | | Chapter 7 Bankruptcy would be able to provide is |
| been able to prevent the actual foreclosure and | | | | that since your petition for bankruptcy would |
| seizing of their properties by their creditors from | | | | need to be first reviewed by the court which |
| happening through this. | | | | could take anywhere between two to three |
| There are generally two chapters of bankruptcy | | | | months. During this process, you are allowed to |
| that you can look into to help you stop the | | | | live in your home without any obligation to your |
| foreclosure from actually happening. The first one | | | | creditors and would be automatically protected |
| is the Chapter 13 Bankruptcy. This type of | | | | from being sold by your creditor. This would |
| bankruptcy would allow you to help save and | | | | provide you sufficient time to save up enough |
| protect all the assets that you currently have | | | | money which you can then use to find a new |
| while still being able to provide you with an | | | | place to live in and make a fresh new start. |
| extended period of time to pay a portion of the | | | | |