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Bankruptcy, Foreclosure Defense May Both Be Necessary

When your home has an upside down loan to property value and you have overwhelming medical debt, credit card debt and want to keep your home you will have to file Chapter 7 bankruptcy AND file a foreclosure defenseto get rid of debt, yet retain the title to your home.

The situation goes something like this:
1. You are three to six months behind on your mortgage and know that you will not be able to catch up.
       a. you have received a foreclosure notice from your lender
       b. you have decided you want to keep your home if at all possible
       c. your home has dropped in value and is now worth less than the amount owed
       d. you have a second or a third mortgage on the home.
2. You are two to six months behind on your credit card payments
3. You have not been able to make medical debt payments
4. You have less income than is needed to make payments to these creditors
5. You don’t expect to have an increase in income, a tax refund, inheritance or other resource that would allow you to pay off your arrearages to catch up.

You decide that you DO want to get rid of the mountain of debt but you also want to try to save your home.

All individual financial situations vary greatly and there is no way to state clearly what should be done for your particular economic problemas until speaking with Orlando Bankruptcy attorneys Eric Lanigan and Roddy Lanigan.

There is not one answer or one absolute resolution but if in the above situation you pass the state Means Test, here is an option to be aware of:
1. You’ll file for a Chapter 7 Bankruptcy to eliminate debt
2. You’ll also be involved in a Foreclosure Defense to retain title to your home

Many families and individuals filing Florida Chapter 7 bankruptcy don’t understand why they have to also defend against Foreclosure Defense. They think that filing Chapter 7 bankrupty will eliminate the debt on the mortgage but you still hold title to the home.

In order to retain title to the home you will have to demonstrate that with the income that you have and the elimination of the second and or third mortgage that you’ll be able to pay a new mortgage. The lender has to agree to that along with determining what terms will be acceptable in order to hold onto the home.

Bankruptcy and foreclosure in Central Florida is not a simple process. It’s important to consult with Orlando bankruptcy and foreclosure attorneys Eric Lanigan and Roddy Lanigan to find out what the alternatives are and what options will be in your best interests.

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