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Stop Arkansas home foreclosure: bankruptcy as an option

Although it is not the best option for everyone, you can stop Arkansas home foreclosure with bankruptcy.

stop Arkansas home foreclosure bankruptcyIt's possible to stop Arkansas home foreclosure with bankruptcy, yet this option is not the best alternative for everyone. Depending on the type of bankruptcy that you file, you may be able to delay the foreclosure for months or stop it completely.

Chapter 7 and Chapter 13 bankruptcy allow you to either liquidate your assets and pay off your debts in reduced amounts or reorganize your debts and create a repayment plan. Because a bankruptcy will be on your credit history for seven to 10 years, it is not a better option than foreclosure unless you have debts other than your home that you cannot pay.

Do you owe more than your home is worth? Find out here.

Your mortgage lender may stop Arkansas home foreclosure during bankruptcy proceedings. You may have an additional two to three months to live in the house while you file bankruptcy. If you file for Chapter 13 bankruptcy, you may be able to keep your home as part of your repayment plan. Depending on the total amount that you owe, the bank might give you up to five years to make those payments.

Your lender can petition the court to follow through with the foreclosure, however. If you file for bankruptcy prior to receiving a foreclosure notice, you stand a better chance of saving your home. 

Selling your home in pre-foreclosure or through a short sale is a better alternative to bankruptcy if you want   to exit your mortgage and do not have other major debts. To talk to a real estate agent who specializes in pre-foreclosure sales, go to Reply! 

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