How is including home in a Bankruptcy different than Forcelosing?

[Fflamingo]

How is including home in a Bankruptcy different than Forcelosing?



Thank you,

[drowning123]

Bankruptcy means you don't owe the bank anymore, but the house still gets foreclosed anyway. After bankruptcy, you can actually stay in the house for quite a while, depending on where you live, until the bank takes back ownership (foreclosure) and asks you to get out.

[lichteda]

Foreclosure is the legal process in which the creditor must follow to take possession of the home when the debtor defaults. The rules governing foreclosure processes vary from State to State.

BK is a process which protects the debtor while the debtor works through the "voiding" process of agreements... including mortgages.

So if you stop paying a mortgage… the creditor can work through the foreclosure process no matter if a BK has been filed or not.