At Wadhwani & Shanfeld, we are passionate about helping our clients overcome their financial instability. If you are interested in protecting your home from foreclosure under Chapter 13 bankruptcy, we encourage you to call our accomplished team of Southern California foreclosure lawyers as soon as possible. We aim to deliver customized solutions to help you keep one of your most valuable assets.
Allow our Southern California foreclosure attorneys to help you move forward with confidence. Discuss your options in a free case review!
Can Bankruptcy Protect My Home From Foreclosure?
Facing foreclosure is not only stressful but can also leave you feeling
hopeless when you are unsure where to turn for help. There are many
reasons why people fall behind on their mortgage payments. From medical bills to unforeseen financial burdens, thankfully, Chapter
13 bankruptcy can be an avenue to save your home. Here’s how the
process works.
How Can Filing Bankruptcy Help Me Prevent Foreclosure?
Chapter 13 bankruptcy, also known as reorganization bankruptcy, can allow
you to catch up on your mortgage payments. After filing your petition
for Chapter 13 bankruptcy, an “automatic stay” will immediately
take effect. An “automatic stay” prohibits lenders from completing
a foreclosure proceeding. Now you will be able to catch up on mortgage
payments through a 3 to 5-year bankruptcy plan.
The state of California has the second-highest foreclosure rate in the nation — coming
in just behind the state of Florida with more than 79,370 homes foreclosed on between
April 2012 and 2013. If you are facing a mortgage crisis, it is important to talk
to a Southern California foreclosure attorney as soon as possible. Under Chapter
13 bankruptcy, you can save your home from foreclosure by reorganizing your mortgage
debt and repaying your delinquent payments over an extended period of time.
Other Ways Chapter 13 Bankruptcy Can Help Protect Your Home:
The moment you file for Chapter 13 bankruptcy, the court issues an "automatic stay,"
which immediately prevents creditors from collecting any debt, even halting foreclosure sales.
Filing under Chapter 13 gives those struggling with serious debt a chance to keep
their homes and to repay high-priced mortgages strategically. In addition, filing
Chapter 13 could allow you to discharge other debts or pay a fraction of some, giving
you increased financial flexibility. However, Chapter 13 bankruptcy may not be the
right choice for everyone. There are limits to the amount of debt a filer can have.
As of April 1, 2016, eligible filers cannot have unsecured debt exceeding $394,725 or secured debt exceeding $1,184,200.
Can a Second Mortgage Be Discharged Through Bankruptcy?
If you’ve been struggling with making payments on your second mortgage,
the good news is, bankruptcy can help. Bankruptcy law permits
second mortgages to be treated as unsecured debt. Knowing how unsecured debt works in bankruptcy
is important when deciding the best bankruptcy plan for your financial
situation. Consulting a bankruptcy attorney can help you make the right decision.
Additional Benefits to Chapter 13 Bankruptcy
Not only can Chapter 13 save your home from foreclosure, but other benefits
may further help your financial situation. Chapter 13 bankruptcy can:
Take the First Step: Call Our Southern California Foreclosure Lawyers
Our firm has more than 20,000 satisfied clients and over 65 years of collective experience. We are committed to our clients and we work hard to pursue optimal results using strategies tailored for each situation.
