Bankruptcy Filings Will Go Up

More economic bad news means more Detroit MI bankruptcy filings, and more chapter 7 and chapter 13 bankruptcy filings almost everywhere.

Home sales continue to plunge.

Government programs have failed to stem the tide of foreclosures, which will only go up as “Home Loans Going Bad Faster Than They’re Being Helped” as the title of the article by Dan Weil of MoneyNews.com states.

Chapter 7 bankruptcy can get you out of any personal liability on your mortgages, but does not help save your house.  It buys only a short delay in the foreclosure process.

But, it may be better than having that second mortgage company sue you for twenty or forty or eighty thousand dollars.

Chapter 13 bankruptcy allows you to catch up on missed mortgage payments, and get rid of a second mortgage in some cases.

But, what is the point of filing a Chapter 13 bankruptcy to pay $200,000 for a $100,000 house?

Bankruptcy Filings Will Go Up

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