Chapter 7 bankruptcy works like this:
First, you meet with your attorney to discuss your options. Then, he files a petition on your behalf. Once the court approves the petition, you will receive notice of the date set for the meeting of creditors. At this meeting, your attorney will ask each creditor to verify the amount you owe them. He will then present evidence showing that you are unable to pay these debts.
Based upon this information, the judge will decide whether to grant you a Chapter 7 discharge. If so, you will be given 180 days to repay your debts. During this time, you will continue making regular monthly payments to the trustee.
Once the time limit expires, the trustee will begin selling off your possessions to satisfy your debts. Finally, after all of your debts have been paid, you will get back whatever money you still owe to your creditors.
The advantages of Chapter 7 bankruptcy include:
• It is usually faster than other types of bankruptcy.
• There are no asset liquidations required.
• No one has to know about your financial problems.
• You retain ownership of most of your assets.
If you are considering filing for Chapter 7 bankruptcy, please contact our office today. We would be happy to answer any questions you might have regarding the procedure.
If you are facing foreclosure, you may want to consider a short sale instead. This type of transaction involves selling your house for less than its value. In exchange for the difference between the sales price and the balance due on the mortgage, the lender agrees to cancel the debt.
A short sale requires more work from both parties involved. The bank must agree to sell the house at a lower price. And you will need to find someone willing to buy your house for less than it’s worth.
However, if you choose to go through with a short sale, there are several benefits compared to foreclosure. For example, you won’t have to wait until the end of the month to make rent or mortgage payments. Also, you won’ t have to worry about losing your house during the foreclosure process.
Another option is to stop paying your mortgage. This strategy is called “bankruptcy in reverse.” By stopping your mortgage payments, you force the bank to start repossessing your home. However, this approach carries risks because you could lose your property even though you don’t technically owe anything to anyone.
Finally, you can try to negotiate an agreement with your lender. Under this scenario, you can keep your house by agreeing to reduce your payment amount. This arrangement often allows you to avoid foreclosure while also reducing your overall debt load.
If you are facing foreclosure, we can help you determine which option best suits your needs. Please call us today to schedule a consultation.