If you haven’t been able to keep up with mortgage payments, the clock is ticking. Once a lien holder files a Notice of Default on your mortgage, you will only have a few months to bring your mortgage current before your home is scheduled for a foreclosure sale. Of course you want to do whatever you can to avoid either bankruptcy or foreclosure, but you may eventually need to decide between the two.
If you’ve been able to make the majority of your Virginia mortgage payments on time but have defaulted on other debts, you might want to consider filing for bankruptcy. In many cases, you will be able to keep your home.
A bankruptcy will stay on your credit report for up to ten years. If you have a regular source of income and can manage filing for financial restructuring under Chapter 13, the bankruptcy will only be on your credit report for 7 years. Many people have found that it is easier to rebuild your credit score for major loans in the future under Chapter 13.
However, if your mortgage is your primary source of debt, you might want to consider letting your home go into foreclosure without filing for bankruptcy. A foreclosure will stay on your credit report for 7 years. It can have up to twice the negative impact on your score that bankruptcy will, meaning it will take a lot more time and effort to get approval for mortgages and other major loans in the future.
If you are in financial trouble and may soon be facing bankruptcy or foreclosure, now is the time to seek knowledgeable legal advice. The Fairfax County Bankruptcy attorneys at the Strong Law Firm offer Virginia, District of Columbia and Maryland bankruptcy solutions. Call 887-344-8189 to schedule a complimentary case review today.
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