Can Bankruptcy Save My Bucks County Home from Foreclosure?

People often ask their Bucks County Bankruptcy attorney if their home can be saved from foreclosure by bankruptcy. The answer depends on many variables, but the biggest determining factor is the type of bankruptcy you file under. Knowing the difference between Chapter 7 and Chapter 13 bankruptcy can help you make the right decision about your bankruptcy.

Under Chapter 7 bankruptcy your home can be saved from foreclosure for a short period of time. Generally the filing of your bankruptcy will put an automatic “stay” in place which prevents the creditor from attempting to collect on their debt in any way, including foreclosure. This stay will only last until the court rules it exempt, the property is not abandoned, or the case is closed. Chapter 7 bankruptcy is usually most beneficial to those individuals who do not have a provable long term income, can stop the foreclosure outside of the bankruptcy, or prefer to surrender their home.

In contrast, Chapter 13 bankruptcy puts a stay against the collection of debt until the case is closed – but often provides a three to five year plan to cure defaults. This will give you the opportunity to correct the mistakes that have taken place while working towards fixing your financial situation in the future. This is the best option to choose if you are able to generate steady income and own significant amounts of property.

Consulting with a Bucks County Bankruptcy lawyer is the best way to make sure you are moving forward with the best decision for your situation. There are many people that will find that filing for bankruptcy without the help of an attorney is just too difficult, especially when it comes to an in depth understanding of the information that is required when filing for bankruptcy. Consulting with a bankruptcy attorney before making any filings is a smart idea.