Why More Homeowners Are Choosing Bankruptcy in 2024

In this episode of The Foreclosure Fix, we tackle one of the most important and often misunderstood topics when it comes to foreclosure: bankruptcy. With filings up by over 16%, many homeowners are wondering if this might be the solution to keep their home. But is bankruptcy the right move for you?

I’m DJ Olojo, and today we’ll discuss why more people are turning to bankruptcy, the key benefits it offers, and how it can help you preserve your home and assets during financial hardship. If you're feeling the pressure of mounting debt, high inflation, and even the return of student loan payments, this episode is for you.

Here are some of the key points we cover:

• Why are bankruptcies on the rise? With inflation soaring and consumer debt at an all-time high, more individuals and families are turning to bankruptcy as a lifeline.
• Different Types of Bankruptcy: Most homeowners face either Chapter 13 or Chapter 7. Chapter 13 helps you restructure debt to keep your home, while Chapter 7 allows for a discharge of debts.
• Common Reasons for Bankruptcy: From job loss to medical expenses and overwhelming credit card debt, we highlight the various circumstances that lead people to file.
• The Role of Bankruptcy in Saving Your Home: Bankruptcy doesn’t just address foreclosure—it helps manage all your debts, which can free up the resources needed to keep your property.
• The Power of an Automatic Stay: Once you file for bankruptcy, creditors are legally required to stop collection efforts, giving you some breathing room to evaluate your next steps.
• How Bankruptcy Can Help Rebuild Credit: While it’s true that bankruptcy impacts your credit, it can also clear away burdensome debt, allowing you to rebuild your financial foundation over time.
• The Importance of Consulting a Licensed Attorney: Bankruptcy can be complex. We stress the importance of working with a licensed professional to guide you through the process.

Remember, while bankruptcy isn’t for everyone, it could be a viable option to protect your home and assets. Make sure you seek the advice of a professional to understand how it might benefit you specifically.

Tune in now to learn more about how bankruptcy fits into the foreclosure process and whether it might be the right solution for your financial challenges.

For more resources, visit www.theforeclosurefix.com.