Most states provide bankruptcy exemptionsfor equity built in a family home, and these exemptions can be very useful when battling a foreclosure. However, recent scrutiny into foreclosure practices has revealed that many homeowners not only have no idea of their rights regarding bankruptcy exemptions or foreclosure, but they often do not even know who is holding their mortgages.
Even when a debtor understands who holds the paper on his or her home, it is unlikely that there is much use for that information. Recent examination of several bank’s foreclosure practices reveal that previous holders of promissory notes are often initiating foreclosure when they do not technically have the right to do so.
If you are facing foreclosure or bankruptcy, it may be helpful to seek experienced legal advice. There are ways to stop foreclosure proceedings and salvage your home’s equity through the protections offered by the bankruptcy code; however, it may be difficult invoke these protections without sound legal advice and help.
Filing bankruptcy is a last resort for many people. However, for many people it ends up being a good way to both save their home and obtain some debt relief. It may also help you hold the creditors off while you plan new ways to increase your income and create a workable budget. A bankruptcy attorney can help you decide if filing is the right choice for you.
Source: The New York Times, “Mortgage Registry Muddles Foreclosures,” Gretchen Morgenson, Sept. 1, 2012.by