One in Five Homeowners Filed for Bankruptcy to Avoid Foreclosure in June

RISMedia 
August 5, 2009

Avoiding foreclosure is the main objective of many homeowners who decide to file for bankruptcy, finds the Consumer Credit Counseling Service (CCCS) of Greater Atlanta. The national nonprofit determined that out of tens of thousands of clients who underwent pre-bankruptcy counseling in April, May, and June, roughly one in five indicated a commitment to save their homes from foreclosure. Federal bankruptcy code allows filers who seek Chapter 13 to keep their homes as long as they continue to meet their monthly mortgage obligation. "Our research shows that tens of thousands of Americans are turning to bankruptcy to avoid foreclosure," remarked CCCS of Greater Atlanta President Suzanne Boas, who advises distressed borrowers to contact a nonprofit counseling agency for assistance as soon as they suspect they are going to have problems making their mortgage payment.

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