subject: Do You Have To Payback A Foreclosure In Missouri And Illinois? [print this page] Many people look to Missouri or Illinois Chapter 13 bankruptcy to get protection from foreclosure. There are some, however, who believe that, if their home is sold at auction, they will be free of their debt. Unfortunately, that isn't always teh case and that is the very notion that has gotten some people over their heads in debt.
If your home is sold, the bank doesn't just call it even. Creditors will still take action against you. If your home is sold for less than you owed on it, the difference between what you owed and what the home was sold for is the deficiency balance and you are still required to pay it. For example, say you owe $80,000 on your mortgage but your home goes to auction and only sells for $60,000. You will have a $20,000 deficiency balance that you are required to pay. And your creditors will do whatever it takes to get that money back from you. They can obtain a judgment to garnish your wages or even levy your bank accounts to get that debt repaid.
Can you imagine owing money on a home that you could no longer call yours? That is often a reason for people to seek out an experienced Missouri or Illinois bankruptcy attorney to speak with about Chapter 13. A chapter 13 bankruptcy stops foreclosure dead in its tracks and prevents your creditors from taking any more action against you. By the time that people have defaulted on their mortgages, they have also usually run into some other debt problems. Chapter 13 bankruptcy is the only option for protection from foreclosure that can truly help you with every aspect of your debt. It can give you credit card debt help, stop car repossession, and stop a wage garnishment. If you have let your home go to foreclosure, Chapter 7 bankruptcy can help you get rid of the deficiency balance and still handle the rest of your debt.
If you are facing foreclosure, it would be in your best interest to talk to a St. Louis Missouri or Illinois bankruptcy attorney right away. He or she will be able to tell you exactly what a Missouri or Illinois bankruptcy lawyer is capable of helping you with and make sure that you can get the protection from foreclosure that you and your family deserve.
