"Stop Foreclosure with Bankruptcy" could be Bad Medicine

[Michael Galloway]

Just as the drug industry has disclaimers, so should attorneys selling services of the cure all "Stop Foreclosure with Bankruptcy"

I see advertisements all the time for "stop foreclosure with bankruptcy", I have not once seen any disclosure about the fact that this is NOT a sure fire way to stop a foreclosure. Not once have I seen a disclaimer in fine print that reads something along the lines of...

"May not be suitable for all cases, in fact a creditor(your lender) may file a Relief from Stay (when a creditor is permitted to take action to collect his debt or to regain possession of its collateral) and your main reason, your mortgage on your home is set aside from the bankruptcy, followed by headache, nausea, upset stomach, diarrhea, and loss of money for paying an attorney group for a cure all that didn't work."

It is distasteful to me that so many attorneys and firms that market this tactic to "stop a foreclosure" are preying on the unsophisticated. In addition, the homeowner is lead into believing that the bankruptcy is going to stop the foreclosure. Not the case. In many cases it is delaying the inevitable. FORECLOSURE.

I can't tell you how many times I have run into property owners in the "I filed bankruptcy" situation. All the while being lead down the primrose path by an attorney! They spend all of their money in a bankruptcy, only to find out several months later that there home is still going to be sold. Where is the honesty in that?

Before you spend your last dime on a bankruptcy, try to make sure you have a good chance of repayment in your restructuring of your debt. Otherwise you could be wasting even more money on legal aspects that are not a remedy to your symptoms.