For those in the midst of having a home foreclosed upon, finding a means of halting action or protecting credit may be of the utmost importance. While no one ever dreams of filing for bankruptcy, understanding the relationship between bankruptcy and home foreclosure is a must for those who are in need of immediate help. Florida homeowners may be surprised to learn just how filing for bankruptcy can provide a much needed reprieve while an individual or family fights to regain financial stability.
One immediate benefit to filing for bankruptcy is that it immediately stops the home foreclosure action. This does not mean home foreclosure is dropped or the action is stopped forever. But the halt in action may be all you need to regain some control and make a plan that can either save your home or decrease the damage to credit if a foreclosure moves forward.
For those who rely on automatic payments, filing for bankruptcy will affect those payments and the payment process in general. The filing for bankruptcy can halt the automatic deduction. This means payments will not come out, and you may get further behind on payments. It is vital for anyone who has filed for bankruptcy to keep an extra eye on automatic deductions and make necessary accommodations to keep up with withdraws and avoid late fees.
There is no one-size-fits-all solution to stopping a home foreclosure. However, bankruptcy may be the best option once all other options are on the table. Our firm understands the confusion, hesitation and misinformation that may make someone in Florida leery of bankruptcy in general. With more information online, our website can clear up misconceptions and help those who may feel conflicted about what steps to take to minimize the impact of home foreclosure and regain stable financial footing.