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Avoiding Foreclosure

Is Filing Chapter 13 Bankruptcy a Reasonable Option to the Debtor?

Many Americans struggle to pay off mortgage dues due to reasons ranging from professional relocation to expensive divorces. Lenders and mortgage companies offer the defaulting homeowners options such as loan modification, short sale, and ultimately foreclosure to retrieve the loaned money. Homeowners often resort to filing bankruptcy proceedings to avoid the impending foreclosure. This paper investigates whether filing a Chapter 13 Bankruptcy is a reasonable option for a debtor trying to avoid a foreclosure.

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