Is it Better to Avoid Foreclosure with a Pre-Foreclosure Sale or to Declare Bankruptcy?
This will depend on your financial circumstances, but in general, a pre-foreclosure sale is better because you receive cash from the sale of your home, and it will not affect your credit report.
However, if your financial circumstances are dire, bankruptcy may be the better option. For example, if the cash you’d receive from the sale of your home would not be enough to get you out of other debts, and you would have difficulty even finding a place to rent because of your credit score, bankruptcy would provide more comprehensive help for you.
If you are in a desperate situation in which you may lose your home and still not be able to pay your debts, you need advocates working in your best interest. Your creditors have legal help to fight you, and you need legal help to protect your rights.
We can get you in touch with bankruptcy attorneys and credit counselors, who will help you through your situation and get you back on track. It costs nothing to call, and there’s no obligation. A bankruptcy attorney can help you stay in your house longer, and credit counseling can save you thousands of dollars in the future.