Debt Free USA Debt settlement help
Debt Related Links
(estimates are ok)
Credit Card Debt:
Other Debts:
Exluding mortgages, auto loans, (unless vehicle repossessed), and student loans

My Bill Payment are:
Finance Calculators
Get Out of Debt with Debt Free USA
Breadcrumbs: Home > news > bankruptcy news

Doing Time in Bankruptcy Court

Insolvency proceedings are a legal action registered by someone who cannot pay his debt. Once bankruptcy is filed, all active civil legal proceedings related to the mortgage will be stopped. Therefore, a mortgage bank must cease all collection actions. But, a mortgage company may be allowed to go forward if they ask for relief from the automatic stay period; and if it is allowed, can go ahead w

Sometimes consumers will need to pick between filing for financial insolvency or permitting their mortgage lender to foreclose on their home.  If monthly house payments are not made on time, the financial institution will eventually file for a foreclosure on the home.  You may disrupt the house foreclosure process by paying the home loan lender as agreed.  Mortgage loans are very similar to automobile loans; if you cannot pay your payments you invariably will have it repossessed.  It is the very same for everybody who has not been able to pay his mortgage; the mortgage lender will start the foreclosure process.

Bankruptcy is a legal act that is registered by someone who is unable to pay her debts.  If the debtor is in the middle of bankruptcy then all current civil legal proceedings associated with the mortgage will be put on hold.  Legally, a home loan creditor has to interrupt all collection processes, including foreclosure.  A home loan lender can be permitted to go forward if they appeal for relief from the automatic stay period; and if it is permitted, may continue with the previously mentioned action.  Filing for Bankruptcy will not halt foreclosure and you must still repay your home loan.  Bankruptcy does not solve the underlying problem, it simply makes the foreclosure process go forward slowly.

While insolvency will not stop a foreclosure for good, it gives a person more time to pay back the over due or at a minimum it will make it bit less difficult to to pay back a mortgage lender.  Bankruptcy law requires that a mortgage lender to freeze a foreclosure action, a home owner has a little time to produce the money to pay back the creditor.  The last resort for any home owner to declare bankruptcy when the consumer is totally incapable of to satisfying their creditor's terms of repayment.  Under bankruptcy, some non-secured debt will likely be discharged but the loan on the home will not be discharged.  The borrower has to be prepared to pay back the mortgage inside the given time frame as the debt is secured by an asset.  In addition, chapter 13 bankruptcy has a fee schedule that is court-ordered, that will allow the home owner make payments on her mortgage to get caught up to date on their mortgage payments.

It is not everybody meets the standards for insolvency and unfortunately if the borrower does meet the conditions, there are legal fees to pay.  Possibly, it may cost you more in legal fees than it does to just bootstrap it and clear the late payments owed.  If you know somebody that is considering that filing for insolvency can help to solve the problem, a good lawyer will probably be able to answer whatever questions.  Because insolvency is really detailed, consumer really ought not set about to do it by themselves.

This is not legal advice.  Contact a bankruptcy attorney in your municipality for bankruptcy advice advice.

Related News Headlines:
debt settlement | News | Financial Calculators | Debt Management Advice | F.A.Q. | Careers | About Debt Free USA | Terms of Use | Privacy Policy |Sitemap
We provide Debt Settlement and Debt Management Programs in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Gorgia, Illinois, Indiana, Iowa, Lousiana, Maryland, Massechussettes, Michigan, Minnisota, Montana, Mosouri, Nebraska, Nevada, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennesee, Texas, Utah, Washington.
*Individual results may vary and are based on the ability to save funds and successful completion of the program terms. Debt Settlement program does not assume or pay any consumer debts, and does not provide tax or legal advice. Program not available in all states. Read and understand all contract terms prior to enrollment.
Copyright © 2009 Debt Free USA. All Rights Reserved.