Foreclosure And Bankruptcy Are Very Drastic Measures And Are Best Handled With Professional Help

Bankruptcy is the option chosen when a person or organization is unable to repay all the debts owed to the person or company. When a person or organization files for bankruptcy in New York in good faith, a debtor who owes a certain amount of money to a creditor may be unable to repay that money or set up a payment plan. A bankruptcy application can be filed voluntarily at the request of the debtor. Involuntary bankruptcy is also possible if creditors file a petition with the bankruptcy court. Once the application is submitted, the debtor must respond to the application within 20 days. By speaking with a New York bankruptcy attorney, you can better understand how bankruptcy can benefit you. If you're concerned about how this will affect your credit score, you can obtain a credit report that shows your pre-bankruptcy and post-bankruptcy credit scores. An example is here: 123nylaw[dot]com/wp-content/uploads/2016/11/sample-credit-report.pdf

If you want to save your home, you need the help of a foreclosure attorney. This is especially true if you want to use bankruptcy to protect your home. Bankruptcy is typically filed when a homeowner has exhausted all other options and is unable to come up with a plan with their creditors. Chapter 7 bankruptcy allows a debtor's assets to be distributed to all debtors in excess of the forgiveness amount. Most people who file Chapter 7 bankruptcy do not have assets to be distributed. Assets can be sold to pay off debts. However, if it is not sold at a fair market value, the bankruptcy trustee can force the applicant to pay the debtor an amount equal to the difference between its value and the price at which it was actually sold.

Foreclosure is a legal process that requires the assistance of a foreclosure law firm. When a mortgage lender or bank forecloses, now is not the time to learn the law to protect your home, the most expensive item you will ever own. If the borrower defaults on its obligations to the bank, the bank will be forced to file a foreclosure application in court. If the bank wins in court, the mortgage company can sell the property first to pay off the property's outstanding debt and other costs that may have been incurred during the foreclosure process. From the moment of sale, the lender comes first, and after his needs and those of all other lienholders have been met, the remaining amount is paid to the borrower. Even if there are not enough funds to pay off the debt, the borrower may still be responsible for repaying the outstanding debt, which could result in wages being garnished to pay off the debt or other debts, such as a car. Assets may be seized.

The situation is different in the case of compulsory execution in bankruptcy. If you go bankrupt, your bank can be sued in court, and the foreclosure process can be halted. Bankruptcy also affects other outstanding debts. Because these are legal procedures, you typically need to hire a foreclosure attorney. From Long Island to New Jersey, bankruptcy can be used as a tool. Therefore, you need to identify the best defense firm to represent your interests at trial. Winning requires a defense enterprise that can use multiple tools.

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