Are you facing a foreclosure and considering
bankruptcy as a possible solution? If so, I have some information you may want to hear
before you file. Hi, I’m Jim Keaveney of Keaveney Legal Group,
we’re a law firm servicing Pennsylvania and New Jersey. We focus a portion of our practice
on helping people avoid foreclosure. While bankruptcy can be an attractive solution for
resetting your financial life, it may not be the best option for avoiding foreclosure
and keeping your home. Even if it is the path you choose, there are some other things to
consider, as well. Depending on the type of bankruptcy you declare,
you may end up having to sacrifice your home. While any bankruptcy will delay foreclosure
proceedings through a process called an “automatic stay,” that delay may be relatively short
lived. You will still have to find a way of paying your mortgage payments after the bankruptcy,
otherwise you could still face foreclosure. What’s worse, in some instances you may have
to sacrifice the home in bankruptcy to satisfy your creditors. In other words, you may discharge
the debt, but still end up losing your home. If possible, a better alternative may be to
seek a modification of your home loan. You can reduce your payments and make it more
affordable and practical for you to remain in your home. If the idea of letting the bank take back
the home in bankruptcy is not an issue for you, you may want to consider the issue of
upkeep. If you include a property in bankruptcy and you vacate the home before the title transfers,
you’re going to have a problem, because you are still obligated for upkeep and code enforcement
violations until bank takes title of the property. You could actually jeopardize your bankruptcy
if you end up allowing the home to be damaged by lack of maintenance while the bankruptcy
is pending. While it is not impossible to get both a bankruptcy
and then a loan modification, it may complicate things for you. If you included the mortgage
in your bankruptcy, you may have to go through what’s called a “reaffirmation process,” where
the bank asks you to reaffirm the debt, in connection with the modification. Also, your
eligibility for certain government-backed loan modification programs may be delayed
or barred entirely by the bankruptcy filing. As a result, you may want to investigate loan
modifications before declaring bankruptcy in order to avoid these potential complications. To learn more about the advantages and disadvantages
of bankruptcy in relation to your mortgage, you should contact an experienced, qualified
attorney. At Keaveney Legal Group we help homeowners avoid foreclosure everyday, and
we would welcome the opportunity to speak with you about your case. You can reach us
by calling 1-800-219-0939 or via email at [email protected] I’m Jim Keaveney;
have a great day!