If you're facing foreclosure, can bankruptcy help you save your home?

www.coloradobankruptcyadvice.com When you're behind on your mortgage and drowning in other debts you may be facing foreclosure and bankruptcy -- what to do? Can you file for bankruptcy during a foreclosure?

Chapter 7 bankruptcy will delay foreclosure to give you time to prepare to move, freezing foreclosure for 60 days. In Chapter 13 bankruptcy, you can save your home -- if you lost your job or your income dropped and now you can pay your mortgage but you're struggling to pay missed payments, you can pay the missed payments over 3-5 years in a Chapter 13.

When is the best time to file bankruptcy if you're facing foreclosure? In a Chapter 7 bankruptcy, you want to file before the foreclosure sale date. In a Chapter 7 bankruptcy, it depends on your income and whether or not you have a Homeowners Association (HOA) tied to your home. If you file bankruptcy before the foreclosure, you'd have to pay HOA dues. You don't want to have to do that if you've already moved and are paying rent somewhere else. A bankruptcy attorney can help you explore your options for the best time for you to plan your foreclosure and your bankruptcy.

If you want to remove a second mortgage you have to qualify. If the value of your home is worth less than the first mortgage (for example, if your mortgage is $200,000 and your home is valued at $199,999 or less, you can get out from under the second mortgage, no matter how much it is.

Foreclosure versus bankruptcy, which affects your credit more? With foreclosure it is a matter of public record that your home went into foreclosure. It's on you credit report for 7 years, you get a 1099 on the deficiency amount (the difference between the mortgage amount and what the home sold for). Bankruptcy on the other hand gets rid of the deficiency, you don't owe any taxes on the difference, you can rebuild your credit in two years, and you can even qualify for a FHA mortgage within three years.

Call Kevin Heupel at 720-319-8900 or visit www.coloradobankruptcyadvice.com to talk about your options.

Category:

People & Blogs

Tags:

• missed mortgage payments
• keep your home in bankruptcy
• Colorado bankruptcy attorney
• Denver bankruptcy attorney