SOURCE: Law Offices of David Giller LLC

Law Offices of David Giller LLC

May 17, 2011 11:26 ET

Law Offices of David Giller, LLC: Eliminate Foreclosure -- Keep Your Home Through Bankruptcy

HACKENSACK, NJ--(Marketwire - May 17, 2011) - During these tough economic times, many homeowners are facing foreclosures on their homes. If you've received a foreclosure notice in the past year, you are among one of 2.5 million American homeowners who are living with the overwhelming stress and anxiety associated with the fear and uncertainty of understanding how long the foreclosure process will take, and when you will be forced to move out of your home. Many homeowners don't realize that aside from legitimate defenses that are available to address your foreclosure lawsuit, bankruptcy is another viable option that will allow you to keep your home and pay the arrears in your mortgage, depending on your current income and financial situation.

Many Americans consider bankruptcy a disgrace and perhaps even borderline criminal. This is precisely what your credit card companies want you to believe. However, the United States Bankruptcy code provides bankruptcy protection to debtors who are unable to pay their bills in their entirety. The US Bankruptcy Code could allow you to keep your home, eliminate your foreclosure lawsuit and provide you with the repayment plan you desperately seek.

Though both foreclosure and bankruptcy will remain on your financial records for seven years, foreclosure may make it even harder for you to obtain credit in the future. If your house is in foreclosure, you may still significant credit card debt and other outstanding loans. Filing for bankruptcy can eliminate your unsecured debts (such as credit cards and other lines of credit), providing you with a zero balance on your credit report. By reducing your outstanding debts to zero, it often becomes easier to obtain loans or mortgages in the future after bankruptcy versus allowing your home to go into foreclosure.

Individuals can choose between Chapter 7 or Chapter 13 bankruptcy, depending on your current income, assets, type of debt and the amount of equity in your home. Equity is the difference between the current market value of your home compared to the outstanding mortgage on your home. For example, if your home is worth $500,000 and you still owe $400,000, then you have $100,000 equity in your home.

If you don't have much equity in your home, Chapter 7 bankruptcy may be the best option to enable you to keep your home. Every state allows exemptions on primary homes to those filing bankruptcy. That means that if you file for bankruptcy, you may be able to protect the equity in your home without being forced to sell your home to pay your creditors.

If you have a significant amount of equity in your home, then Chapter 7 bankruptcy may not be the best option for you. Rather, Chapter 13 would allow you to keep your home and work out a payment plan that will enable you to catch up on late payments. In Chapter 13 bankruptcy, depending on your household income, you might be able to repay the arrears in your mortgage while also eliminating all of your credit cards, medical bills and other unsecured debts. Chapter 13 bankruptcy is a powerful solution for individuals with a stable and secure income who simply fell behind on their mortgage payments.

Deciding whether to lose your home in foreclosure or file for bankruptcy can be a difficult decision. If your home is in foreclosure, doing nothing is your worst option. Instead of waiting for the sheriff to come and knock on your door, take a step towards finding out which solution is most appropriate for your situation. Consulting an experienced bankruptcy attorney mean the difference between keeping your home and losing it. A trained bankruptcy attorney can assess your circumstances and provide you with legal options most appropriate to your particular situation.

If you live in New Jersey, it is in your best interests to consult with the Law Offices of David Giller, to take the first step in saving your home from foreclosure. David Giller is an attorney who provides professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. He has successfully counseled families who were at risk of foreclosure, enabling them to keep their home and renegotiate their mortgage. To learn more about David Giller or his law practice, visit

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    David Giller
    Law Offices of David Giller, LLC
    Telephone Number: (201) 478-7412
    Fax Number: (201) 336-9105
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