San Diego bankruptcy lawyer

San Diego bankruptcy lawyer

San Diego bankruptcy lawyer

San Diego bankruptcy lawyer

San Diego bankruptcy lawyer
San Diego bankruptcy lawyer

Free Consultation619-235-9645

Can Bankruptcy Stop Foreclosure

by admin on September 6, 2016

Can bankruptcy stop foreclosure?

One of the most difficult and traumatic challenges that a person can face is the prospect of a foreclosure. A person’s home normally is the center of life. The idea that one’s home might be taken away from him or her can be a most bitter pill to swallow. Considering bankruptcy is the next thought . If you have found yourself facing the prospect of a foreclosure on your home — or if you have already found yourself smack dab in the middle of a foreclosure case — you did not necessarily have to assume that all is lost. In this day and age, there are some options available to you should you find yourself involved in foreclosure proceedings.

Bankruptcy can stop foreclosure

Chapter 7 versus Chapter 13 have very different effects when your house is getting foreclosed on . In  Chapter 7 bankruptcy, if the,borrower’s behind on the mortgage, the lender is simply going to ask the bankruptcy court for permission to ahead with the foreclosure. And that’s done by filing a motion. Those motions are routinely granted and then the lender goes ahead with the foreclosure.

Now, that used to be standard operating procedure for lenders, but that was before the real estate bubble sort of burst and now there are practical considerations coming into the picture as well as legal ones and lenders are prioritizing which foreclosures. Lenders will go after the larger balance mortgages first. So, someone with a relatively modest mortgage loan um, might stay in their home for months. So far the record, in my practice, I’ve seen, I had one client stay in his home for 20 months before even receiving a notice of default.

Chapter 13 is actually designed to be able to help the homeowner stay in the house and catch up on the mortgage payments that they’ve missed.the best case is a borrower who has to be in a Chapter 13 because of some kind of temporary financial setback. Because, if it’s permanent financial setback, in their income flow they’re just not gonna be able to keep up with all the payments. That is because they’ve gotta make not only the entire on-going mortgage payment but, then they’re gonna have to make the Chapter 13 plan payment for the credit payment ,bills and to catch up all the missed mortgage payments. But, for someone who’s had a temporary setback, it’s  a wonderful thing.

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