Due to the recent economic crisis, home foreclosure and auto repossession have become everyday facts of life throughout the United States. Filing bankruptcy can be part of an overall strategy for avoiding or reducing the impact of foreclosure or repossession. We will analyze your case to determine whether filing bankruptcy is likely to help you. Ultimately, if you want to keep your home or car, you need to be able to continue making your payments. If you cannot afford those payments, you probably need to start planning to eventually lose the underlying asset. Bankruptcy can help you in a couple of key ways.
• Discharge deficiency judgments: If you have a second mortgage or car loan where you owe more than the asset is currently worth, you could end up liable for the difference. Filing Chapter 7can eliminate deficiency judgments.
• Buy time and save money: Filing bankruptcy puts an automatic stay on foreclosure and repossession. This may only last for 60 days, but in the meantime, you get to keep your home or car, and you may be able to start saving up money.
Sometimes, it is necessary to walk away from a home or car rather than continuing to lose money and going further into debt every month. Bankruptcy may help you make the process go more smoothly so you can move on with your life.