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In Most Cases, Bankruptcy Beats Foreclosure

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By CATHERINE PEEK MCEWEN

Published: October 31, 2007

Shannon Behnken's articles ('Financial Woes Drag Neighborhoods Down,' Oct. 21, 2007) on the foreclosure crisis did not go far enough to educate homeowners on alternatives to foreclosure. Her articles and other recent articles The Tribune has published on the crisis steer a homeowner back to the lender or lending association Web sites.

Depending on one's circumstances, another - and many times better - alternative is a Chapter 13 bankruptcy. In a Chapter 13 case, a homeowner is permitted to repay the delinquent mortgage installments over a period of 60 months (that's five years), while making the going-forward installment payments on time. Lenders typically offer a much, much shorter catch-up period.

State Sen. Arthenia Joyner of Tampa has introduced legislation calling for foreclosing lenders to advise homeowners that, under certain circumstances, bankruptcy may enable the owner to keep the home. If the bill passes, homeowners will get the message about bankruptcy directly and need not depend on the local paper for that information. But in the meantime, The Tribune should include this option when it publishes information (as it did in the Oct. 21 sidebar) on how homeowners in financial distress may keep their homes.

For more information on bankruptcy alternatives, The Tribune's readers should go to www.flmb.uscourts.gov/documents/misc/bankruptcybas... and visit other links on our area's bankruptcy court Web site ( www.flmb.uscourts.gov).

Catherine Peek McEwen is a U.S. bankruptcy judge in the Middle District of Florida.

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