Bankruptcy/Foreclosure

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Bankruptcy/Foreclosure

I’m filing Chapter 7 Bankruptcy and at the same time my home is in pre-Foreclosure. If my mortgage company accepts a Deed-In-Lieu instead of going through a foreclosure sale is it better for my credit score & rebuilding my financial future even though I still will have a bankruptcy on my record. Or should I stay in the home as long as possible waiting out the foreclosure & being able to save longer for when I have to finally move?

Asked on May 21, 2009 under Bankruptcy Law, Florida

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The answer to that might well depend on your entire financial picture.  So I think you'd be wise to talk this through with a bankruptcy lawyer, rather than handle that on your own.  One place to find qualified attorneys is our website, http://attorneypages.com

It's possible that you will be able to take care of the mortgage with a deed-in-lieu even after the bankruptcy has been started.  Typically, the mortgage company will move to have the stay lifted, as to the mortgage, after your bankruptcy has been filed, and if you aren't making payments, those motions are often granted.  There may be other options open to you as well, that might make even more sense, but this will depend on all the facts of your case.


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