At Kosacci Law Firm, P.C. we can help you with figuring out how bankruptcy might benefit you when you are in foreclosure. At first you might think that Bankruptcy is a dirty word but in fact it may be a word that can save you from a bad situation turning into an even worse situation.

Here are the Basics: Bankruptcy is a legal process by which a person or other entity that cannot repay their debts is able to legal get rid of them (discharge). On the other hand foreclosure is a specific legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. The filing of a bankruptcy can allow you to stop a foreclosure and eliminate any personal liability for the mortgage note.

So what is considered to be worse for you? Technically a bankruptcy stays on your credit history for 7 years and public record for 10 years. A foreclosure stays on your records for 7 years. The benefit of filing for bankruptcy, aside from providing extra time through the automatic stay, is that it will allow you to permanently rid yourself of the obligation to pay back any deficiency owed to the bank after the home (collateral) is sold.

All of the paperwork and information can get very confusing so the first step, if you find yourself falling behind on payments is to give us a call and discuss your situation, we are here to help. Please feel free to contact us at Kosacci Law Firm, P.C. to speak with an experienced bankruptcy and foreclosure attorney. We are conveniently located at in Bucks County, just outside Northeast Philadelphia.


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