One In Five File For Bankruptcy To Avoid Foreclosure

Posted by Orb Staff on August 07, 2009 No Comments
Categories : Mortgage Servicing

one in five people who receive pre-filing bankruptcy counseling from the [link=http://www.cccsatl.org/mediaRoom/pressReleaseDetail.jsp?id=3145][u]Consumer Credit Counseling Service (CCCS) of Greater Atlanta[/u][/link] say they filed for bankruptcy in order to avoid foreclosure. The agency collected information about the connection between bankruptcy and foreclosure in April, May and June. The decision to file for bankruptcy to avoid foreclosure appears to be a consistent trend during that period, CCCS of Greater Atlanta says. In April, the agency provided pre-filing bankruptcy counseling to 17,603 individuals, and 20.4% of those counseled, or 3,598 persons, stated that avoiding foreclosure was the reason for choosing bankruptcy. During the months of May and June, 21.6% of individuals receiving such counseling cited foreclosure avoidance as the reason for filing for bankruptcy. Under federal bankruptcy laws, individuals who file for bankruptcy under chapter 13 are protected from foreclosure, as long as they continue to make their monthly mortgage payments. Once the individual's bankruptcy plan has been approved, the borrower must continue making their mortgage payments to avoid the risk of foreclosure. Any person seeking to file for bankruptcy protection is required to receive credit counseling. SOURCE: [link=http://www.cccsatl.org]CCCS of Greater Atlanta

Register here to receive our Latest Headlines email newsletter




Leave a Comment