We are seriously considering a bankruptcy for the sole purpose of remaining in our home which is in a foreclosure process. We were served with the foreclosure on the 24th and have until the 12th (20 days) to answer or come up with a satisfactory payment to save our home. We may not be able to come up with the money by the 12th. My question is, is it possible to still save our home after the 20 days (meaning is our home then owned by the bank and we have no recourse after the 20 days)? Or is our only real option to file bankruptcy? Also, according to the lawyer, we have to file a Chapter 13. Is this right? We want to stay in our home, this is the main intent, but the Chapter 13 seems daunting and it's effects seem a little harsh for us. So is a Chapter 13 the only way to save a home and remain in a home? How long afterward is our credit going to be messed up? I had heard that it is easier sometimes to get certain kinds of credit after a bankruptcy.

Also, approximately how long is the process of foreclosure? Meaning how long from the 12th would we have to either file bankruptcy or be evicted?

Thanks for any answers.

The time frame for them to file and get a court date varies from state to state and courts within the state. Also some states don't require a court hearing

Now with a chapter 13 all the rest of your bills pus the late pay on the house will be set into a payment plan, but you will still have to make the current house payments, so id you can't afford to make the payments each month, it will not still save the house.

But effects harsh? What effects, after being so late on payments they are gong to foreclose and having it foreclosed in fact a bankruptcy may even improve your credit

Our lawyer said that only secured debts would be included in repayment, not unsecured debts. Is this incorrect?

Also, is the Chapter 13 the only way to "save" a home and remain living there without having to pay huge amounts of money upfront?

We can afford our payment, the thing was that we got behind due to medical reasons and it snowballed, as our mtg co wouldn't accept anything less than the total amount due. We tried time and again to resolve this with our mtg co but we can't come to a mutual agreement.

I must be honest with you. A bankruptcy will not help your credit (sorry Fr_Chuck) but it could stop you from falling farther behind on your other bills. As for the recourse after filing a chapter 13. The FCRA (fair credit reporting act) states that a Bankruptcy can actually stay on your report for up to 10 years. Yikes! But the good news is, there are ways of challenging this after all said and done. I know a lot of legit companies out there that after waiting a year from filing will help challenge with the three bureaus and it could be removed. No guarantees But know that a bankruptcy will drop your score greatly. But a foreclosure is also going to be bad, it however, will only stay on your report for up to 7 years.

Well actually credit kid not saying in their case but if a person has a lot of bad credit, a lot of late and more a bankruptcy has been known to improve some peoples credit scores.

But if you file bankruptcy all debts have to be included, secure and non secure, and all of them have to be listed and paid back at a percentage,
All of the non secured will be paid accordig to your ability.

You will be placed on a very tight budget that you will have to be on for several years at least.

The money you pay the court each month will be for payment of all non secured debts a percentage of the debt being paid, Any secure property you want to keep will be re-affirmed so you have to keep paying that bill.

Sorry buddy, but you can even look it up on MYFICO.com bankruptcy will not improve ones score.

Just to throw in my two cents in support of Fr. Chuck. Obviously a bankruptcy will trash a FICO score - in the short term. By taking this harsh step, it will allow the healing process of the credit score to begin that much sooner. I have seen many people rebuild their scores to acceptable levels within a few year following a BK, provided that they do not continue the mistakes of the past.:)

This came off Clark Howard, on his radio show, ( and web site)

Thanks a lot.

But if you file bankrutpcy, all debts have to be included.

Depending on your budget you may only have to pay back pennies on the dollar but on a chapter 13, all debts have to be listed not just the secure.

Thanks again, except for Mr Negativity...