Although unemployment rates continue to go down and the housing market appears to be improving, many are still facing foreclosure proceedings for a variety of reasons. If you are in this situation, you need to explore all options before determining which course of action is right for you. There are advantages to using a foreclosure defense and advantages to filing for bankruptcy. Contact a bankruptcy lawyer in Chicago today to discuss both and which will be of most help in your particular situation. Here are the advantages of each type to be aware of before you meet with your bankruptcy lawyer in Chicago.
Bankruptcy
1. Bankruptcy will wipe out your debt, if you choose to file for Chapter 7, or will restructure debt if you choose to go with the Chapter 13 plan. With a Chapter 13 bankruptcy, debt will be restructured in such a way that you can make regular payments to pay the debt down or off.
2. There are no tax consequences of filing for bankruptcy, which can be a problem with certain foreclosure defenses.
3. Creditors won’t be able to harass you or garnish your wages if you choose to file for bankruptcy.
Foreclosure Defense
4. Your credit rating won’t suffer the same negative effects as are seen with a bankruptcy. A bankruptcy must be disclosed for the rest of your life, which some would prefer to avoid.
5. When the attorney negotiates with the mortgage lender, he or she may be able to negotiate more favorable terms, to minimize the effects on your finances.
6. Mortgage lenders are held accountable for any actions they take. There are unscrupulous lenders who try to take advantage of those who find themselves in a difficult financial situation. An attorney will be able to spot these lenders and ensure you aren’t treated unfairly.
You may find that you are facing both foreclosure and bankruptcy. In certain cases, your attorney may recommend that you file for bankruptcy and then take advantage of one or more foreclosure defense strategies. Meet with an attorney today to discuss all options and determine which is right for your particular situation. Doing so helps to ensure you minimize the effects of whatever choice you make.
