How Bankruptcy Can Save You From Foreclosure
The housing bubble that burst in 2008 has yet to recover, continuing to shackle millions of Americans with upside down loans and astronomical monthly payments. Faced with abandoning their homes, many homeowners have very few options. One solution many turn to when they are unable to make payments on their home is foreclosure. In foreclosure, the homeowner effectively gives up ownership of their home allowing their lender to sell the home to the highest bidder in order to recoup on the investment. However, other individuals turn to bankruptcy to avoid foreclosure all together.
When an individual files for bankruptcy, they immediately receive an automatic stay, which tells creditors that they cannot collect on debts from the individual. The automatic stay is effective even in foreclosure, announcing to the creditor that the foreclosure cannot be completed while the bankruptcy pending.
In Chapter 13 bankruptcy, debtors are able to pay off late, unpaid payments over the length of the bankruptcy plan -- up to five years in some cases. If you are able to complete these payments, you'll avoid foreclosure and be able to stay in your home. For individuals with second and third mortgages, Chapter 13 bankruptcy can eliminate these loans all together. Since your first mortgage is secured by your home, second or third mortgages can be classified as unsecured and are thus dischargeable in bankruptcy. However, interest rates have increased so much, even a discharge of second and third mortgages, late fees, and unpaid payments will not be enough and will eventually force you out of your home. You need to leave behind your home, but can do it in a more intelligent way than foreclosure.
In this situation, Chapter 7 bankruptcy is the solution you are looking for. In Chapter 7, you still have to give up your home, however it will stall the proceedings for several months allowing you to live in your home for free as the bankruptcy is pending. During this time you can save up money for a new place after you leave. Additionally, after Chapter 7 is completed, you will be free of debt all together including credit card, car payments, and medical bills along with other debts associated with home ownership including second and third mortgages.
While Chapter 7 or 13 bankruptcy might be attractive options that would work for you, unfortunately not everyone is eligible. That is where it is important to talk to a professional who can assess your situation, give you honest advice with your best outcome in mind, and who knows your local law.
If you are seriously considering bankruptcy and you live in Southern California, contact the firm that focuses exclusively on California bankruptcy laws, Borowitz & Clark L.L.P. The Los Angeles bankruptcy attorneys at Borowitz & Clark know what they're doing, because bankruptcy is all they do. Unlike many firms, they never leave a paralegal or secretary in charge of a case. That's why their cases succeed at such a high rate—even higher than many other bankruptcy firms. For a free consultation, contact the qualified Los Angeles bankruptcy attorneys from Borowitz and Clark toll-free at 800-509-3200, or visit www.blclaw.com.
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Employing a Los Angeles Bankruptcy Attorney The Los Angeles bankruptcy attorney is an personal who is an ace when it arrives to dealing with the laws in the city of LA. They are generally legal authorities who are well versed with the monetary clauses and norms in the American federal and state laws. No a single wants to opt for bankruptcy, but there are occasions when there is no resolution left. After making an attempt measures like financial debt mortgage consolidati...
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Reason For Hiring A Bankruptcy Attorney Financial problems are a portion of life and individuals in the US are continually faced by them. Nevertheless, they are unaware of the guidelines and laws governing their scenario as the laws are identified to fluctuate from location to spot and scenario to predicament. A Los Angeles bankruptcy attorney assists people in Los Angeles who are dealing with a bankruptcy issue. It is needed to consult a lawyer just before filing for bank...
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Students from both private and public universities all over the country may also provide low cost or free advice. The sessions will only achieve directing clients to the right legal path in filing the right papers. Note that with the new bankruptcy laws taking into effect making the bankruptcy filing process more difficult than usual, an experienced bankruptcy attorney will be worth your money.
Many people who enter the bankruptcy process worry about the fate of their credit. This is actually unnecessary as the bulk of credit damage happens before the bankruptcy process is even initiated. While no one wants the added hassle of rebuilding their credit after resolving debt troubles, doing so can put you leaps ahead of others in the credit game.
Americans are now filing Chapter 7 or 13 Bankruptcy to get their debts under control. Bankruptcy in itself is designed for debt elimination. Chapter 7 bankruptcy functions to cancel out unsecured debt such as utility or medical bills, credit card, etc. Chapter 13 Bankruptcy on the other hand is designed to give individuals more time in repaying all their debts.
Filing for bankruptcy is good news whenever you are struggling with your credit card debt, mortgage or medical bills. Bankruptcy laws help families and individuals in their debt struggles. You have two options on how to deal with your debt problems, Chapter 7 (debt elimination) and Chapter 13 (reorganization). Always remember that you can regain credit again after successfully filing your bankruptcy.
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If you are over-burdened with bills and cannot see any light at the end of the tunnel, bankruptcy may be the best option to help you eliminate credit card and unsecured debt, silence harassing collection companies, stop foreclosure, keep non-exempt property and reduce secured debt.
It is important to be fully informed about what a prospective lawyer can offer and what to expect from them. To consult with a California bankruptcy lawyer who specialize solely in bankruptcy law, contact the attorneys at Borowitz, Lozano and Clark at 1-800-509-3200 for a free consultation.
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Debts can erase any savings you have made for a child's college education, however you can protect these funds in a couple of easy steps and filing for bankruptcy.
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