Bankruptcy Lawyer Bloomington IL
Are You Facing Foreclosure? Contact a Bankruptcy Lawyer Bloomington IL Trusts to Save Your Home
If you are a homeowner who is struggling financially and facing foreclosure, you may be trying to decide if it would be better to just let the foreclosure go through or if bankruptcy may be an option for you. Both of these choices can have a major negative impact on your credit rating. A foreclosure will stay on your credit report for seven years. Bankruptcy will stay on your credit report for either seven or 10 years (depending on which type you file).
At Pioletti Pioletti & Nichols, we are dedicated to helping clients with their financial issues. Whether you are facing foreclosure, vehicle repossession, wage garnishment, or other types of financial issues, we can help you determine what legal options will work for your situation.
If you are facing foreclosures, there are factors that your Bloomington IL bankruptcy lawyer can go over with you in order to help you decide what you want to do. If you want to save your home, then there are several steps you can take. If your mortgage arrears are one or two months, then the bank or mortgage company may be willing to work out a payment arrangement with you. Other options may be to restructure your loan or agree to a forbearance. This is when the lender agrees not to foreclose, and the borrower agrees to keep to a repayment plan with will eventually bring the mortgage current.
If none of these options will work, then you may be able to keep your home through bankruptcy. There are two types of personal bankruptcy, Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, everything a person owns is liquidated. In Chapter 13, all debt is restructured. In order to stop a foreclosure, Chapter 13 would be the appropriate option.
Once your bankruptcy lawyer files your bankruptcy petition with the court, all debt collection ceases. This also includes any foreclosure proceeding that your mortgage lender has instituted. A payment plan is set up in order for you to pay all your creditors, including your mortgage.
Why Not Foreclosure?
Although bankruptcy may have a negative impact on your credit score, a foreclosure is much direr to your score, causing a drop of approximately 300 points. Not only that, future lenders do not like to see foreclosures in your record, whereas a bankruptcy does not have such a negative effect. You have a much better chance of obtaining a future mortgage if you file bankruptcy and not have a foreclosure.
A third option that may work is a short sale. A short sale is when the property is worth less than the balance you owe for your mortgage, but the mortgage lender agrees to waive your obligation to pay the balance owed after the sale.
And lastly, the mortgage company may agree to a deed in lieu of foreclosure. This is where you agree to turn the property over to the mortgage lender do not have any more obligation.
Contact a bankruptcy lawyer Bloomington IL clients recommend to discuss what your options are if you are facing foreclosure or any other financial difficulties. Call Pioletti Pioletti & Nichols for assistance.
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