If you choose a consumer bankruptcy petition, you may question if you can also discharge your business debts at this time. Follow along here.
When the housing market collapses, homeowners can only stand by and watch as their most valuable investment becomes their greatest liability. Unable to sell their home for a profit, many homeowners in a downward market are forced to make a difficult decision: fall further into debt or relieve the burden by giving up their home.
At Schwartz Bankruptcy Law Center, we’ve seen individuals and families struggle with the real and oftentimes difficult decision to turn over their keys and walk away from their homes. We’ve seen the emotional impact this has and the damage it can do to their credit score. This is not a burden we want anyone to bear, which is why for several decades now, attorney Richard A. Schwartz has been helping homeowners in Kentucky and Indiana understand all of their debt relief options, including bankruptcy.
A Chapter 13 bankruptcy has two components that make it ideally suited to saving your home from foreclosure:
The problem often facing homeowners is that their home’s value is less than what they owe on their mortgage. If the bank sells a foreclosed home for less than what is owed, the difference is called a “deficiency.” In the end, the bank can sue for that deficiency, costing someone more than just their credit score.
Chapter 7 bankruptcy can help you eliminate the “deficiency” whether you file before or after the foreclosure sale.
There are a lot of important things to consider when facing a considerable amount of debt. One of these things is your home. At Schwartz Bankruptcy Law Center, we help you realize the other options to foreclosure, such as seeking a short sale, in hopes of saving you from unnecessary burdens down the road.
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