The difference between bankruptcy and foreclosure is sometimes confusing to a delinquent homeowner stressed out due to a bad financial situation. Bankruptcy and foreclosure are very different procedures, but some homeowners consider filing bankruptcy to keep from foreclosure. Bankruptcy is handled through the U.S. Federal Bankruptcy Court and typically requires an attorney to assist you.

While foreclosure, if Judicial, is typically handled through the County Court system. Some states have the option of a non Judicial foreclosure proceeding, see the State Foreclosure Laws for details. Foreclosure is the act of 'foreclosing' on your mortgage and taking back the home that is securing the mortgage.

Bankruptcy is used to protect consumers from creditors and, depending on the type of bankruptcy, gives consumers more time to pay their debts without losing assets. While the difference is clear, the question of which is worse bankruptcy or foreclosure requires closer scrutiny.

A bankruptcy filing can stay on your credit report for up to 10 years which can make it difficult to get home loans after foreclosure and bankruptcy. However, statistically 80% of the people who file bankruptcy have new credit in
2 years or less but at higher interest rates for sure. Bankruptcy is typically not the best option for most people.

Foreclosure can stay on your credit report for up to 7 years and, while definitely making it difficult to get new credit, it is not as detrimental as a bankruptcy filing. Foreclosures can be resolved without resorting to bankruptcy and all resolution possibilities should be pursued before giving in to filing bankruptcy. BackOnTracNow can help you stop foreclosure without the need to file bankruptcy.

The difference between bankruptcy and foreclosure is clear, but often confused because some homeowners use bankruptcy to stop their foreclosure. Here are just a few of the differences:

• Bankruptcy is filed in Federal Bankruptcy Court
  
• Foreclosures are handled in County Court or in some states with no court at all.
  
• Bankruptcy is used by some to get relief from debt and save their home from foreclosure.
  
• In a foreclosure proceeding the lender 'repossesses' the home that is securing the delinquent loan

Now that you see the differences it should be clear that BackOnTracNow is the superior choice. Avoid foreclosure and bankruptcy while still saving your home. Let BackOnTracNow's proven system coach you through the 7 easy steps to saving your home. Get more stop foreclosure information.