With a bankruptcy filing, you can stop a foreclosure. For a time. However, before you file, you have to determine if you are going to use the bankruptcy to prevent the foreclosure and keep your home, or merely to prevent the lender from collecting the deficiency balance and any associated costs from the foreclosure, if you abandon the property.
While job market has begun to show some signs of life and home values have improved, the mortgage crisis and the resulting foreclosure debacle, has caused tremendous damage for workers and homeowners. While foreclosures have fallen from the crisis levels, they have not disappeared. And much like the job market, the most important index of foreclosures is the personal. What matters most is whether your home is involved in one.
Deciding to file a bankruptcy is never an easy question. While you may want to fulfill all of your obligations, your finances may have gotten out of hand. If you have lost a job or change jobs, perhaps at a lower level of income, your cash flow may no longer support all of your obligations.
The collapse of the real estate market a decade ago did more than make it difficult for homeowners to sell their property. In addition to causing a crash in home values and helping propel the U.S. and world economy into the most severe recession in generations, it left millions of Americans "underwater" with their mortgages.
For many Tennesseans, it is medical debt that sends them into bankruptcy. While some believe most bankruptcy cases are due to debtor's poor spending habits, the truth is often far more grim. Many who think of themselves as middle class workers, often with some degree of medical insurance, can suddenly find themselves saddled with unmanageable and overwhelming medical debt.
Part of the process of Chapter 7 bankruptcy includes what is known as the "meeting of the creditors." It is required by statute and the statute section that mandates it is section 341, so it is often referred to as the "341 meeting."