gastroenterologist undercoating: What Is Worse ? Bankruptcy Or Foreclosure Facts

Saturday, February 18, 2012

What Is Worse ? Bankruptcy Or Foreclosure Facts | Finance Help ...

What Is Worse ? Bankruptcy Or Foreclosure Facts

The recent global financial crisis affected the lives of many Canadians, leaving them struggling with mortgage payments and other debts. Millions face a difficult dilemma, should they file bankruptcy or opt for foreclosure?

In reality, this is not an easy choice. Foreclosure and bankruptcy will stay on your credit report, though bankruptcy is likely to stay longer. At the same time, financial institutions do not look favorably on borrowers who have faced foreclosure.

Before you think of foreclosure, it is best to contact your financial institution. Do this if you are behind by a month or two and before the process has gone any further. If you have received a formal notice of default from your lender, it may seem to you like you are in serious trouble. However, nothing is lost, and you have time before the formal process of foreclosure begins. Of course, one question to answer is whether you want to keep the property, or you are willing to give it up. If you don?t want to lose your house, do your best to make up for the missed payments. You can pay in a lump sum or spread them out. If this is not an option, you may talk to your lender and request that the loan is modified. For instance, you can ask if they can offer you a lower interest rate.

What happens if you declare bankruptcy? This can come at a price. You can use the services of a bankruptcy lawyer who will charge a hefty fee. On the other hand, it may be difficult to find a good professional because some of them are after profits and handle cases quickly. Your lawyer may not give proper attention to your bankruptcy case. Filing bankruptcy involves other costs, too, such as mailing costs, court fees, and government fees for filing. Your trustee in bankruptcy will probably require that you cover these costs. You will also lose windfall you receive or are entitled to. These are amounts a person gets by luck, for example, lottery winnings or inheritance. Surplus income is also lost, which is a portion of your income. When you meet your trustee in bankruptcy, they will estimate how much you will pay. You should bring recent pay stubs to this purpose.

Furthermore, you still have to pay some of your debts, and these include child support, alimony, taxes, as well as those resulting from willful injury or fraud. Fines and penalties are to be paid as well.

Bankrutpcy will remain on your record for several years, and your application for a credit card or loan may be denied. Is discrimination a source of concern? Discrimination against persons who have filed bankruptcy is prohibited by law. You cannot be denied public housing, a driver?s license, or job on grounds that you have declared bankruptcy.

Credit reports in Canada can be confusing, and credit reports guide is here to help.