New Bankruptcy Law Makes It Harder To Stop Foreclosure
Are you facing huge financial problems that might lead to you being unable to keep up your mortgage monthly payments? This is a very common problem in the United States these days, but that fact is of no consolation to you if you are facing financial problems.
If the problem is very bad then your lender might resort to legal methods to recover money from you.
According to bankruptcy law your lenders might choose to take repossession of the home.
There is one thing you could do in case you feel that your financial problems are becoming too difficult to manage.
You could file for bankruptcy because this might help delay the foreclosure of your loan.
If you do this at the right time you might be able to protect your house from being repossessed.
This will give you the breather you need while you try and raise funds from other sources in order to protect your assets.
There have always been irresponsible borrowers, and these people used to borrow money without thinking of the consequences and how they would pay back the loan.
These unscrupulous borrowers created a lot of problem in the market by using a great deal of borrowed money, especially via their credit cards, knowing full well that they would file for bankruptcy in order to delay or avoid foreclosure of their homes and other property.
A new bankruptcy law was passed in 2005 in order to exercise greater control over the process of filing for bankruptcy especially since a few people were using it to delay foreclosure.
According to this law, you would have to attend a credit counseling session before you become eligible to file for bankruptcy.
This is not a small thing because the session usually lasts for 180 days.
If the foreclosure date in your instance lies within this period then there is nothing to prevent the lender from repossessing your house or any other asset.
In addition to learning about managing finances and improving your credit, you will also have to undergo a thorough examination of your financial inflow and outflow.
In other words, this new law makes it much harder to stop foreclosure.
In addition, it also makes the process of filing for bankruptcy a very time consuming one.
However, most people in the finance industry feel that it has succeeded in getting rid of a few malpractices.
People who genuinely qualify to file for bankruptcy because they do not have any other means of generating money will definitely be able to do so without facing any obstacles.
Whatever your personal opinion of this bankruptcy law is, you’ll definitely need to take it into account in case you wish to file for bankruptcy protection from the repossession of your property.
You could also ask to be able to finish your counseling sessions much quicker than before.
This will enable you to fight the foreclosure proceedings and at least get them delayed a while.
Whatever you do, it is best if you get sound legal advice first.