5 Ways Bankruptcy Can Affect You As A Homeowner And How To Deal With It.

5 Ways Bankruptcy Can Affect You as A Homeowner And How To Deal With will show you the effects of bankruptcy on a homeowner and the most efficient way to deal with it. When someone files for bankruptcy, it implies that that person cannot pay off their debt, so he files a petition in a federal court so creditors will give him some leeway. It is a proceeding that s legally binding. Bankruptcy concerning real estate includes chapter 7 bankruptcy when the debtor’s assets are sold to pay off creditors. It is also known as Liquidation. There is also chapter 13 bankruptcy, where you have a payment plan set up over 3- 5 years.

5 Ways Bankruptcy Can Affect You As A Homeowner And How To Deal With It.

• LOSS OF ASSETS: When you file for a chapter 7 bankruptcy, which is Liquidation, you are inclined to sell your own houses and property to pay off the debt. This might even extend to the home you are currently inhabiting.
• FINANCIAL INSTABILITY: Money becomes tight after filing for bankruptcy, especially in chapter 13 bankruptcy, where you have to make regularly scheduled payments. You might even start lagging on your mortgage payments, making you run the risk of losing your home. This can be unsettling and throws a wrench in day-to-day financial plans.
• DAMAGED CREDIT SCORE: the first time you file for bankruptcy, your credit score takes a massive hit because of the debt, and it affects you for at least six to ten years after. But it is not unsalvageable because as long as you continue making regular payments, your credit score will eventually recover and go back to its previous peak.
• RISK OF LOSING HOME: you run the severe risk of losing your home due to various factors. It could be mandated by the court to liquidate your home under particular conditions. It rarely happens, but it’s a well-acknowledged risk. And a possibility is not being able to keep up with mortgage payments which allow the bank or loan agency to take back the house or property.
• INABILITY TO BUY OR SELL REAL ESTATE: bankruptcy automatically blocks you from making a real estate purchase or a real estate sale. You cannot buy or sell real estate without the court’s permission. Which means you can’t downsize to make things easier.

There are some foolproof methods of dealing with the after-effects of filing for bankruptcy. For instance, you could wait for your credit score to recover before taking out a new mortgage if you don’t mind waiting.

But suppose you want to sell your home after filing for bankruptcy. In that case, you should look for a reliable cash buyer like SHRUBBY, who will give you an excellent house cash offer with very enticing benefits without the hassle of too much legal processing. They buy the house as-is and in any condition whatsoever. They are the best option to help you recover.