If you are facing foreclosure on your home, you shouldn’t give up hope about your situation. As a homeowner, you have many ways of avoiding foreclosure when you think about using the proper money management techniques.
An Unusual Money Management Technique
You might think that all money management techniques are related to budgeting and saving. However, you’d be wrong! If you are in serious financial trouble, did you know that filing for bankruptcy can delay foreclosure? And, for many people, this money management technique will save their home!
There are two types of personal bankruptcy that you might consider in order to save your home from foreclosure: Chapter 7 and Chapter 11. Let’s go over some of the differences…
Chapter 7 bankruptcy is a form of liquidation. That is to say, when you file for Chapter 7, all of your assets are used to pay off as much debt as possible. Your home’s foreclosure will be postponed – by law – during the bankruptcy process. This usually lasts about three or four months, which could be just what you need.
Chapter 13 bankruptcy is a type of restructuring. Though you’ll need to have a steady income in order to make this money management technique work, the Chapter 13 process can help you get back up to date on your mortgage payment! Many people today are taking advantage of this method for avoiding foreclosure!
If you’re concerned about facing foreclosure, don’t forget that the bankruptcy process is there to provide you the relief and assistance you may require!