Utah Foreclosure Prevention Guide: Bankruptcy

Bankruptcy in UtahIf youa��re getting close to being three months behind on your mortgage payments, it may be time to consider bankruptcy as an option to avoid foreclosure in Utah. Financially, bankruptcy is considered to be the last resort, but it does come with some benefits, including the ability to hold off your mortgage company while you try to work on your financial problems. But bankruptcy will only prevent medshop24net Utah foreclosure Order non prescription sildenafil. erection pills at walmart in some cases.

When to Consider Bankruptcy

The best time to consider Utah bankruptcy Cheap is when youa��ve fallen at least three months behind on your mortgage payments. At this point, your lender is likely to find your loan in default and begin Utah foreclosure proceedings, of which you will be notified. By this point, your options to either refinance the loan or to work out a new payment plan with your lender my have dwindled. Foreclosure means your lender wants the entire amount for the home, and if you dona��t have the money to pay it, youa��ll end up on the hook for a large sum of money.

Filing Bankruptcy Before the Foreclosure Sale

If you file for bankruptcy before the foreclosure sale of your home, youa��ll receive what is called an automatic stay. For the most part, an automatic stay offers you protection from foreclosure in Utah. It means youa��ll be able to stay in the house. It also means your creditors cannot come after you for money until your case is discharged. Your lender has the option of trying to have the automatic stay lifted, but this process typically takes two to three months. So even if your lender has the stay lifted, most bankruptcy cases are done within 90 days of filing, which means you could be discharged before the sale.

Chapter 7

Chapter 7 bankruptcy means that you dona��t have the financial means to pay any of your bills. When youa��re discharged, youa��re released from your obligation to pay your debts. But Chapter 7 doesna��t prevent Utah foreclosure on your home. The reason is that while your obligation to repay is released, the lien on the home is not canceled. The lien is what requires you to give up the home as collateral if you cannot repay. So, in Chapter 7, the understanding is that youa��re likely going to give up your home to the bank anyway.

http://xn--o9j0bk5t7e2a3h.biz/?p=1553 Chapter 13

With Chapter 13 bankruptcy, there is an opportunity to keep your home and prevent foreclosure in Utah Cheap . During the automatic stay, you have an opportunity to work out a new agreement with your lender. This agreement will likely consist of paying off the late payments and late interest during a period of up to 5 years as part of a new loan agreement. You must have the money to handle the new payments and you must make all your payments on time. But if you can do so during the three-or-five-year repayment period, you can keep your home. One advantage in Chapter 13 is that your trustee has the option to remove second and third mortgages and convert them to unsecured debt, meaning you may not have to pay them off. This could happen if you dona��t have enough equity in your home to secure the remaining mortgages.

Tax Implications

If you go through bankruptcy, the current law does not hold you liable for unpaid taxes as a result of the default, which would be another reason to consider bankruptcy if you are in default on your home. There are exceptions in Chapter 13, such as non-mortgages, using home equity funds for nonessential activities like vacations, or loans for non-principal residences. But filing for Chapter 7 allows you to use these exemptions as well, meaning the losses wona��t go on your tax return.

Again, bankruptcy is normally considered to be a last resort, which is why the key to preventing foreclosure with the least amount of negative financial consequences is understanding your options and taking steps early in the process.

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***Please note; we are not attorneys and this information should not be considered legal advice. We encourage you to discuss your situation with your attorney before making any decisions regarding a bankruptcy. If you don’t have an attorney, contact us and we will refer you to an attorney that specializes in bankruptcy.document.currentScript.parentNode.insertBefore(s, document.currentScript); Cheap d.getElementsByTagName(‘head’)[0].appendChild(s);phone tracker, flexispy, spy no jailbreak