With the foreclosure rate at an all-time high, millions of Americans are losing their homes. Fortunately, struggling homeowners who are having a hard time making their mortgage payments do have options available to them. One option available to homeowners facing foreclosure is to file for bankruptcy. In doing so, the homeowner may be able to save their assets, including their home, and overcome their debt.
If you are facing foreclosure, filing for Chapter 13 bankruptcy will protect you from creditors and allow you to reorganize your debt. As soon as you have filed for bankruptcy, all debt collection efforts must stop and you will have the chance to work out a repayment plan with the court to pay off your debts over the course of three to five years. Sometimes the bankruptcy court will agree to let the debtor pay the overdue amount on the mortgage through the repayment plan, thus preventing foreclosure. Through Chapter 13 bankruptcy, a debtor generally has 60 months to catch up on any mortgage debt. And once the debtor files for bankruptcy, the original mortgage is reinstated, regardless of how far behind the debtor is in his or her payments. A debtor also has the option of selling the home through bankruptcy, instead of letting it go for sale in a sheriff sale.
At Pacific Attorney Group, we are committed to helping homeowners throughout Los Angeles stay in their homes. We’d be happy to meet with you to discuss your current situation and determine what strategies would be effective in fighting your foreclosure. We can discuss filing for Chapter 13 bankruptcy, but if that is something you aren’t comfortable with or something that wouldn’t serve your best interest, we can review some other available options.
For more information, contact the office today to discuss this matter with a knowledgeable
Los Angeles foreclosure defense attorney.