Are there any cons to filing a bankruptcy to stop foreclosure?
Unfortunately, negative consequences are often involved when a bankruptcy is declared. These include: • One of the biggest consequences is the simple fact that the bankruptcy remains on the credit history of the individual for ten full years. • The lender or mortgage company can request that the court lift or remove the stay so that they can still proceed with the foreclosure. • The individual who filed the bankruptcy no longer has the credibility or leverage that his place in life once gave him. • Even though a bankruptcy has been filed, the individual must still work out some type of repayment plan with the lender. The past due amount on the mortgage must be repaid. • If payments to the trustee are not made on time, then the stay can be removed or lifted. If this happens, the bankruptcy case is dismissed and the home goes back into foreclosure.
