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We have always been taught that bankruptcy is not a good thing, and that it is a persons last financial resort. In a normal condition, nobody wants a bankruptcy on their records and credit report, but today things are different. Maybe a bankruptcy is not quite as bad as a foreclosure. At this point, credit reports are actually the last thing on peoples minds; its saving their homes that most are concerned with. The credit report comes later.  So, can a bankruptcy save your home? 

So, come to find out, declaring bankruptcy can actually help save some peoples homes from foreclosure. It doesnt, however, help everyone, so be sure you fall into the first category before taking the plunge. Claiming bankruptcy can stop any foreclosure proceeding and bring a halt to harassing phone calls by creditors. This can give people the extra breathing room they may need to get back on track. It may even be a way to save their homes permanently.

Now, if you dont have enough money to pay all of your bills, including your mortgage, a bankruptcy wont help. Overextension is the reason our country is in this situation in the first place. This only helps if you are behind on payments and need some time to catch up. Before you file, do a little research and find out which type of bankruptcy you need to file. The two types are chapter 7 and chapter 13, and both accomplish very different things. If you think bankruptcy can help you, make sure you are filing the right one.

Read the full article from CNNMoney

Posted in Education And Training, Giving Back, GenX GenY, Online Education

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