What is the connection between collection and foreclosure?
Q: Chase ($7,092.00) to Midland Funding sold debt. They are trying to collect and I have not paid since 2009, when I lost my job. My husband is on Social Security and I am still not working. Our house is in Foreclosure. What should I do?
A: You have some options to help resolve your issue of collection. In fact, one option is to file Chapter 7 Bankruptcy. Provided you qualify, the bankruptcy will wipe away the debt to Midland as well as any other collection or credit card debts you may have. It can also relieve you of a future mortgage deficiency if your home is eventually sold through foreclosure. Furthermore, if you would like to try to retain the property, Chapter 13 Bankruptcy is an option that may allow you to come current on your mortgage and resolve your credit card debt. If this is your only credit card debt, you may want to consider settling this debt with Midland. You or an attorney on your behalf can contact the creditor and ask to work out some sort of settlement.
If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
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