The number of Americans who have filed for bankruptcy and/or foreclosures is on the rise. The mortgage crisis has caused many homeowners to find answers in bankruptcy.
The following is an extremely real situation that is facing too many creditors around the country…
A creditor is linked to the debtor via a real mortgage. This means that the debtor has secured his/her debt with their home. What happens to the creditor and/or the real mortgage when the debtor files for bankruptcy?
First of all, the creditor has is “made.” The creditor is in line to receive money from the filing of the bankruptcy first. What usually happens in this scenario is that the authorities will order the sale of the property. Once the property is sold, the creditor will receive his/her funds. What’s nice for the creditor is that they will receive the money first because the debtor’s debt to the creditor was directly linked to the property.
So, what should you do if you are a creditor and you find yourself in a similar situation? Consult with a bankruptcy attorney. Bankruptcy attorneys can advise you on the specifics of your case. Each bankruptcy case is different, so it is hard to give a generic answer. Find a qualified attorney who can walk you through the specifics of your case so as to ensure that you receive your funds and that your home and va loan is secure.