What are the differences between foreclosure defense and bankruptcy?

Foreclosure defense and bankruptcy are two legal processes that can help individuals who are struggling to pay their mortgage debt. Though both processes can help individuals manage their debt, there are several key differences between the two. Foreclosure defense is pursued in foreclosure proceedings, where a lender (usually a bank) attempts to repossess a home from a homeowner who has failed to make payments. The foreclosure defense process involves an attorney representing the homeowner in order to reduce their debt or arrange an alternative payment plan. This process can also involve filing objections, delays, or other legal tactics to try to work out a more satisfactory arrangement with the lender. Bankruptcy, on the other hand, is a federal court process that serves to discharge or reduce the amount of unsecured debt a person owes to creditors. The debtor must list all their assets and liabilities in order to help a bankruptcy court determine how to restructure the debtor’s debt. In Texas, persons filing bankruptcy must generally take a credit counseling course and complete a budgeting plan. In summary, foreclosure defense is a legal process pursued in foreclosure proceedings, while bankruptcy is a federal court process that seeks to reduce or discharge the debt of the debtor. Both may offer individuals relief from overwhelming debt, but it is important to understand the differences between the two legal proceedings in order to make the best decision for your situation.

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