An article in the Washington Post yesterday indicated that many people are going through mandatory pre-bankruptcy credit counseling to avoid foreclosure. One in five people who went through pre-bankruptcy credit counseling were doing so to avoid losing their homes to foreclosure, despite the fact that they cannot eliminate their mortgage payments through bankruptcy, according to Consumer Credit Counseling Services of Greater Atlanta. The Consumer Credit Counseling Services of Greater Atlanta provides counseling throughout the United States.

They advised 50,385 people who planned to file personal bankruptcy during the months of April through June. Each month, slightly over twenty percent of those people sought bankruptcy protection to avoid foreclosure. Once a bankruptcy petition is filed, an automatic stay against efforts to collect debts is created, which includes foreclosures-if only temporarily-according to the American Bankruptcy Institute. If you do not continue to make payments on your mortgage, the foreclosure process can be resumed.

 If you are a strapped homeowner keep in mind that relief from other debts could create enough extra money in the budget to make mortgage payments. That’s something we can evaluate when, and if, you contact me. If you are from the Denver, Aurora, Arvada, Wheat Ridge, Littleton, Englewood, Northglenn, Westminster, Broomfield, Lakewood, Brighton, Lafayette, or Golden, Colorado area, and have any questions regarding bankruptcy, please feel free to get in touch with me at: 303-955-7570, or help@cobankruptcyhelp.com, or fill out the free consultation form.