Can You Go To Jail Because Of Foreclosure?
Powered by Max Banner Ads
The short answer to this question is no.
This is a completely civil matter, meaning that a person will not go to jail but if the bank does not receive payment, they will probably hound their debtor for quite a long time, until something comes of it.
Natalia Osorio Editor of the “Stop Foreclosure Loans” website — http://www.StopForeclosureLoans.org — pointed out;
“…In fact, it is possible that the bank will never decide to go after their debtor for their money. In many situations, the bank may receive enough money to pay off the debt entirely just by auctioning off the property. However, in this sort of situation, or if the bank chooses not to pursue the debt for any other reason the government will probably take that money from the debtor otherwise. They will count it as income…”
If the bank believes that they can still get money from a debtor, they may choose to take it to court to pursue wage garnishment. This is very frequently allowed, but is not nearly as bad as it sounds. In the United States, wage garnishment is automatically limited to only 25% of disposable income. Therefore, wage garnishment is never going to create another problem, in which a debtor is unable to pay other bills. In such a situation, all of those bills would be calculated into non-disposable income.
The safest thing to do in such a situation would probably be to just declare bankruptcy. A good thing to do would be to contact a bankruptcy attorney, who would probably give a free consultation and explain the difference between chapter 7 and chapter 13 bankruptcy. In chapter 7, a lawyer’s fee is paid and all debts are wiped out, while in chapter 13 debts are merely consolidated but no lawyer’s fee is paid. Either one will damage a debtor’s credit, but that sort of thing can easily be fixed later, and it may leave a debtor with no debt whatsoever, allowing him or her to completely start over.
“…These sorts of things are intentionally designed in the United States to not leave permanent scars, which is why we do not have a debtor’s prison. Therefore, a person going through foreclosure really doesn’t have to worry about spending any time in jail…” N. Osorio added.
Further information about how to get professional assistance with a mortgage loan modification by http://www.StopForeclosureLoans.org
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases. Article Source:http://www.articlesbase.com/mortgage-articles/can-you-go-to-jail-because-of-foreclosure-1763676.html
