A foreclosure is a legal way for the bank to take back your house if you are not making your mortgage payments. Many times, when the bank is successful in foreclosing on your home, the home is resold by the bank in an attempt to recoup the loss taken on the loan. But most times the amount paid at resale is less than what you owe, and if that is the case the bank might come knocking for payment of the deficiency. This can come as a shock to most people, who think that the matter is over when the bank gets the house back at foreclosure sale. So, what do you do if you still owe money for your house after it has gone through the foreclosure process?
One thing you can do is to file for bankruptcy, which will eliminate any deficiency debt owed on your home. Bankruptcy is also helpful because it will:
• Eliminate or reduce the amount of unsecured debt you owe. If you have a lot of high balances on credit cards or owe your dentist for an emergency root canal, filing bankruptcy will let you wipe those debts out or at least allow you to pay less than the full balance owed.
• Allow you to pay the value of your car instead of the balance owed. This is beneficial to most every person who owns a car because as we all know, cars depreciate rapidly. If you file a Chapter 13 bankruptcy, the option of paying what your car is worth is available to you. You might also be able to reduce the interest rate on your car loan if you file a Chapter 13 case.
• Immediately stop any collection actions being taken against you, including any wage garnishments.
The benefits of bankruptcy are much more far reaching than what is mentioned above, but because every case is different it is impossible to list them all. To find out how you can benefit from filing a bankruptcy case, call one of our knowledgeable bankruptcy and debt management attorneys today. We will explain your options, and help you make a decision about what to do next.
For answers to your questions about debt, foreclosures, and bankruptcy, contact us at www.DsouzaLegalGroup.com.