Bank finance articles and tips

Filing for a Chapter 7 bankruptcy can provide the immediate financial relief you'll need. Chapter 7 bankruptcies are relatively quicker than their more complicated Chapter 11 and Chapter 13 counterparts - and as you don't have to undergo any repayment plans, you'll immediately experience relief from your biggest debts.

However, that doesn't mean that you'll experience relief from ALL of your debts; in fact, there are exemptions to this rule that can ultimately determine whether or not you'll file for Chapter 7 bankruptcy. If one of your biggest debts can't be discharged by a Chapter 7, you and your bankruptcy attorney view other alternatives.

With this in mind, let's take a look at the debts that can't be discharged in a Chapter 7 bankruptcy.

The foreclosure rate in the United States has reached a pandemic level. There have been millions of foreclosures over the past few years. The number of these foreclosures has shattered annual records. So high is the number of foreclosures that levels such as this have not been seen since the Great Depression. This certainly leads many to wonder what can be done to forestall an eventual foreclosure if not outright stop it. There are certainly no easy answers or solutions to such a problem. However, it is possible that foreclosure actions may be stopped if you were to file for Chapter 13 Bankruptcy.

What is Chapter 13 Bankruptcy and how does it work as a means of stopping foreclosure?

Chapter 7 Bankruptcy

Under Chapter 7 bankruptcy, a homeowner will be able to keep their home if they have no equity in the house, because a trustee would have no money to distribute to creditors after selling the house. Also, a homeowner can keep their home if the equity that they do have in the house is exempt under the homestead exception. However, if a homeowner files for Chapter 7 bankruptcy, they will need to keep making mortgage payments on their house or else they will lose their home.