Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

A Foreclosure Can Affect More Than Just Your Credit Report.

Getting a foreclosure notice in the mail can be devastating. The home that you have built for you and your family over many years can be taken from you in a matter of weeks. But, when you decide to accept your foreclosure, you may be forgetting something.

With the foreclosure crisis in full swing, the negative effect it can have on our children is becoming more apparent. By 2010, experts are predicting that almost 8 million kids will have been the victim of a foreclosure.

What does that mean? That means 8 million kids will have to pack up all of their toys, move schools, experience overcrowding, or lose their feeling of security. It also means that less money will be flowing into your city to support school programs for safety and health.

Chapter 13 bankruptcy can stop a foreclosure. You can prevent them your children suffering the emotional trauma of having to leave their home and build a new life. If foreclosure can’t be avoided, the battle may not be over. You can still be held responsible for the debt that you owe to your mortgage lender if the home is not sold for at least the amount you owe—and they can garnish your wages to get it back. Chapter 7 bankruptcy can erase this balance and allow you to start a new life for your children without the worry of debts from foreclosure coming back to haunt you.

For more information, please visit the St. Louis Bankrutpcy Blog.