How Does Bankruptcy Stop Foreclosure?

Many people are aware that filing bankruptcy can stop a foreclosure, but how exactly does it work? It's important to know that if you are facing foreclosure, bankruptcy can stop it, but it's not always a permanent fix, and there are different powers in different types of bankruptcy.

First, the Automatic Stay

Five Reasons to Choose Chapter 13 Over Chapter 7 Bankruptcy

If you're considering bankruptcy, chances are that a simple chapter 7 is your best bet. However, there are many cases where a chapter 13 could provide more protection and still eliminate a great chunk of your debt.

Here are five big advantages of using a chapter 13 payment plan rather than a chapter 7.

1. Keep All of Your Property

Can I File a Chapter 13 Even if I Qualify for Chapter 7?

There are certain cases where you might want to file a chapter 13 bankruptcy rather than the more common chapter 7. Usually this is because you have valuable assets that might be at risk of liquidation in a chapter 7. So this begs the question; Can you choose?

Usually, the answer is yes, but it depends on whether you have the requisite income to make payments to the chapter 13 plan, and your plan must also ensure that your creditors get at least as much as they would get in a chapter 7.

How Much Debt is Repaid in a Chapter 13 Bankruptcy?

This is a very common question about chapter 13. You might think it has everything to do with how much you owe, but you would be wrong.

The amount of debt that you pay back in a chapter 13 bankruptcy plan has much more to do with how much you earn, not what you owe. Here's an introduction to how it works.

Chapter 13 Bankruptcy and a Judges Power to Modify a Home Loan

Given the state of the housing market and home loan industry over the past few years, it's no wonder why some many people are facing foreclosure and looking to bankruptcy for help.

Historically, bankruptcy judges had the power to "cram down", or reduce the principle on all types of property EXCEPT a home.

If You Are Near Retirement is Bankruptcy Wise?

There are a lot of older people facing very real debt problems and at the same time thinking about retirement. This poses a very big problem. How are you supposed to retire AND repay your debts?

While it's not thought of as a "financial strategy", bankruptcy actually offers a very powerful tool for future retirees to get rid of their debt and start retirement with a clean slate.