Declaring bankruptcy is a drastic action, but it is sometimes a viable one when your bank puts you into foreclosure. While there is a strong social stigma associated with bankruptcy, the reality is that not a lot of people are going to know you declare it unless you tell them.
The type of bankruptcy which you declare will have an impact on what will happen with your mortgage though, and the implications also diverge based on where you live. So you’ve got some research to do before you make a decision.
Chapter 13 and Chapter 7 bankruptcy are the two types you are allowed to pick from when you file for personal bankruptcy.
Read more: Should You Declare Chapter 7 or 13 Bankruptcy?At first glance, a wash sale may seem somewhat complicated. The way wash sales work is a person sells a stock at a loss and then buys the same or identical stock within the wash sale period. The wash sale period consists of 61 calendar days.
These 61 days include the day you sell the stock, 30 days before you sell the stock, and 30 days after. To help you understand here's an example:
On September 30th, you sell 200 shares of ABC at a loss, and then on October 15th you buy 200 shares of ABC, making the shares you sold on September 30th a wash.
Read more: Wash SaleOne of the worst experiences to go through can be a foreclosure. It's stressful, can ruin your credit, and is a financial nightmare. Losing your home by way of foreclosure can also cause embarrassment as its made public that you failed to pay a debt.
Foreclosures make it incredibly difficult to purchase a home in the future as well. Nobody buys a home with the goal of going through foreclosure, so when it happens it can be intimidating and most people are unprepared for it. Luckily there are ways to stop foreclosure.
One way to help prevent the foreclosure process from the start is to notify your lender if you feel you are in danger of missing your mortgage payment. This will help to delay the bank from issuing a Notice of Default against the home owner.
Read more: Stop Foreclosure