Bankruptcy can save your house from foreclosure

CNN has a simple and clear explanation of how bankruptcy can help save your home from foreclosure.

We often discuss the merits of filing for bankruptcy, but we do want you to remember that bankruptcy should be your last resort.  Bankruptcy is not the cure all for everything and everyone.  Filing for bankruptcy will stop the foreclosure process, but it will not immediately wipe out the mortgage and allow you to keep your home without any further payments.  If anyone is telling you otherwise, be careful.

But if you are still working and able to make your mortgage payments, bankruptcy can wipe away your unsecured debt, like credit card bills, giving you a little more breathing room to make those mortgage payments.

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