Is foreclosure the same as bankruptcy?

Answer 1

Yes.

Both are under the public records section.

Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.

Answer 2

No. People file banktruptcy when they have debts they can not pay back. It is a way for the courts to determine what assets an individual has, the order in which creditors get paid off, etc. A foreclosure is an action that a bank or mortgage company files when a borrower is delinquent on payments. It's a way to bring to the courts proof that a borrower is behind on payments, and giving the bank the right to auction off the house to pay off the loan. Often, though, people file banktruptcy as a way to hold off a foreclosure. However, you still have to make your mortgage payments (or new schedule of payments set up by the bankruptcy court) once the banktruptcy is over, or you risk being foreclosed on.

Answer 3

No, foreclosure is the repossession of specific property you pledged to secure a loan/debt, and typically refers to real estate. Bankruptcy is a legal process that allows a person to reorganize or default on debt, and is something one does that effects most of their financial obligations -- most debts and all assets. There are several different types, called "chapters," of bankruptcy that can be declared; the specific choice would be suggested by your attorney or by the court.

Bankruptcy does not release a person from the obligation to pay back taxes or student loans, or from paying off the balance of any loan reaffirmed (usually a house or car), meaning you agree to honor the original or modified contract with those creditors so you don't have to relinquish the asset.

Bankruptcy may stop foreclosure for a short while, at least. Each action has very bad effects on your financial standing and FICO score, worse than most credit defaults. Foreclosures remain on your credit record for seven years; bankruptcies remain for ten.