Chapter 7 Bankrupty and Foreclosure

Finding yourself in troubled waters financially can be cause for alarm. In some cases, consulting with an attorney or financial specialist may very well be the best option. When evaluating problematic finances it is important not to associate the frustrations being felt with feelings of failure. Financial problems can and do happen to everyone, the best advice is to look forward into how you can improve your current situation. Two possibilities are Foreclosure or Chapter 7 Bankruptcy.

Bankruptcy or Foreclosure

Chapter 7 Bankruptcy and Foreclosure have some similarities in that both can provide relief from an unworkable financial situation. In either case, creditors will have to stop harassing you while you determine with the courts how best to move forward.

Foreclosure involves a residency and more specifically when you are unable to meet the basic requirements of your mortgage. Whereas Chapter 7 Bankruptcy occurs when your consumer debts tally to more than your home payments. If is important to note that individuals who are not interested in pursuing Foreclosure or want to delay the date of Foreclosure can file for Chapter 7 Bankruptcy instead. Declaring bankruptcy means that all Foreclosure proceedings must halt until the conclusion of a bankruptcy case.

Some other important differences between Foreclosure and Chapter 7 Bankruptcy are:

Time: In terms of your credit report, a Chapter 7 Bankruptcy will remain on your record for a longer period of time than a Foreclosure. However it is important to note that, even if the record is removed faster, it does not mean the impact will be any less significant.

Liquidation: Chapter 7 Bankruptcy and Foreclosure deal with liquidation of assets differently. Foreclosure used to satisfy financial issues will most likely mean you will primarily be interacting with the bank holding the mortgage. On the other hand, Chapter 7 bankruptcy most likely means dealing with multiple creditors at the same time.

NOTE: Chapter 7 Bankruptcy has a system for contacting creditors that can be managed by an attorney of your choosing. Many find that having an attorney act as their voice in financial situations to be more comforting.

Regardless, whether an individual elects Foreclosure or Chapter 7 Bankruptcy, having an experienced attorney on your side. Chapter 7 Bankruptcy is considered by many to be the best of both worlds as it can delay the date of impending Foreclosure, provide a strategy for protecting assets and eliminate all claims by creditors seeking consumer debts.Patel Law Firm Specializes in both Chapter 7 Bankruptcy and Foreclosure defense.

Call or email for a free consultation to discuss one-on-one what the best option for you is.