Bankruptcy may be a preferred choice if there are substantial financial obligations above and beyond the home loan. Typically bankruptcy will give the homeowner the opportunity to discharge or renegotiate these other debts.
It is important to note that Bankruptcy only delays the foreclosure process until the Bankruptcy Court discharges the case. It does not change the amount owed on the home loan(s) nor does it prevent the bank from foreclosing immediately after the case is discharged.
The United States Congress is debating new legislation that may allow Bankruptcy Judges to restructure home loans (for homeowners in Bankruptcy) and force (“cram-down”) new terms and conditions on the Banks.
We constantly track the progress of these measures, and will update you as these congressional events materialize.
*We are not attorneys or accountants. If you are considering the Bankruptcy option, please consult an attorney specializing in Bankruptcy law for specific advice and direction.
If you are interested in pursuing filing bankruptcy, let us know and we can suggest bankruptcy attorneys with whom you can consult. Simply complete the form below and we will respond to you promptly.
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