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Foreclosure and Bankruptcy

If you have fallen behind on your mortgage payments, you may find yourself facing foreclosure, which is the process through which your lender can sell the home at auction to recover the loan. Filing for Chapter 7 or 13 bankruptcy will stall this process and may allow you to save your home and other assets.

If you choose to file for bankruptcy, the court will immediately issue an order for relief, which includes an automatic stay. This stay forces creditors to cease any collection activities, meaning the foreclosure process will be stalled while the bankruptcy is pending. There are ways for lenders to proceed with the sale of your home despite ongoing bankruptcy processes, however, so if you find yourself facing foreclosure and would like to talk about your options, please call us right away at 1-800-425-4357.

Take into account the following when considering whether a Chapter 7 or 13 bankruptcy may save your home:

Chapter 13

A Chapter 13 bankruptcy will allow you to repay any arrears on your mortgage over the length of your payment plan, which can be as long as five years. If you are able to meet your current mortgage payments while repaying the arrears during this process, you will avoid foreclosure and will be able to keep your home following your bankruptcy.

If you have more than one mortgage, filing for Chapter 13 bankruptcy may allow you to discharge those debts completely through lien stripping. Our experienced attorneys have helped many Californians keep their homes and avoid foreclosure through this process.

Chapter 7

While it may be possible for you to keep your home following a Chapter 7 bankruptcy, its most important role is to stall foreclosure, allowing you to remain in your home long enough to save money and cancel your other debts through the bankruptcy process. Chapter 7 bankruptcy also cancels your liability for tax losses incurred by the lender as a result of your default.

We can help you figure out whether you qualify for a Chapter 7 bankruptcy and whether this option may be best for your financial future. Though both bankruptcy and foreclosure will affect your credit rating, bankruptcy will allow you to discharge many of your debts and earn a fresh start for you and your family.

To talk with one of our attorneys about how we can save your home from foreclosure, please contact us at 1-800-425-4357.