Whats the difference between a foreclosure and a Bankruptcy?

Question

I see the two and am unsure of the difference. I recently found a bankruptcy. Does that mean it's for sale? Do I just call the trustee? They haven't listed a price or returned my calls.
TIA!

Answer 1

Okay...two totally diffrent things. A Foreclosure is when a person fails to make payment on their loan for whatever reason and the the bank that holds the mortgage take back their property. Now there are two different kinds of Bankruptcy: chapter 13 are usually file when a person is about to loose their home if they are in the foreclosure process or the home is up for sheriff sale. Chapter 13 can re-organize their debt and they are REPAYING their debt and saving their home. You can place SECURED (homes, cars etc.) and unsecured debt in a 13. Now a chapter 7 is when you take your secured and your unsecured debt and get a fresh start by wiping away all your debt. you are not REPAYING NOTHING. Laws changed about 2 years ago. Student Loans cannont be placed in a ch 7. nor child support or any debt the is from a result of DUI. Consult with an attorney.

Answer 2

A foreclosure is where a creditor seeks to recover its debt secured by collateral, usually a house, through the sale of the house. This also would wipe out any liens, claims or encumbrances junior to that secured creditor.

If you filed a bankruptcy, the creditor must get relief from the automatic stay - meaning that the trustee in your bankruptcy case is not going to sell the property to pay creditors - in order to proceed. This would mean that there is no equity in the property which could be used by the Trustee to pay any portion of your unsecured debt.

If you filed bankruptcy, foreclosure isn't that much of an issue to you, but, of course, when the foreclosure is complete, you have to leave your home. If there is equity in the house, it is good for the trustee to sell it if you can't afford to stay since you might keep a homestead exemption. If you have no equity, you can live there rent free for a while until you are forced to move out.

Answer 3

Bankruptcy is a legal term saying a person or business can not pay debts. It's either voluntary filed in court by the person who can't pay or involuntary if filed in court by the creditor.

A foreclosure is loss of property due to inability to pay a debt. Processed through a court action by the debt holder of a mortgage for example.

See a lawyer or real estate person regarding particulars as to availability. The bankrupt person may be able to keep their property.

Answer 4

A forclosure is when your property is sold from under you because you can't afford to keep paying for it. Bankruptcy is when you lose everything you own to pay out your debts and can leave you with a bad credit rating.

Answer 5

financial disaster is a criminal intending wherein persons who won't be able to pay their charges can get a clean financial start up. the ultimate to report for financial disaster is geared up via federal regulation, and all financial disaster circumstances are dealt with in federal court docket. submitting financial disaster on the instant stops all your lenders from attempting to collect money owed from you, a minimum of till your money owed are taken care of out in accordance to the regulation. foreclosure is a technique via which a lender regains a property which they have financed. oftentimes, that is because of the fact the borrower or abode proprietor is in the back of on abode money and is unable to seize up, oftentimes by way of circumstances outdoors of his or her administration. while the lender forecloses on the abode proprietor, the abode proprietor might desire to flow out of the abode, as a result, dropping all possession of the valuables and jeopardizing any conceivable fairness that the abode proprietor might have interior the abode. there's a criminal time-physique, which varies from state to state, which determines how long the foreclosure technique can take. observe:the yankee Bar association has pronounced that ninety six% of property vendors who declare financial disaster finally end up dropping their abode to foreclosure besides. financial disaster is amazingly not likely that can assist you maintain your place. in case you declare financial disaster you will probable finally end up with the two a financial disaster and a foreclosure on your credit checklist.

Answer 6

Whats the difference between a foreclosure and a Bankruptcy?

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