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san diego bankruptcy lawyer Can bankruptcy stop foreclosure?

Can bankruptcy stop foreclosure?

Can bankruptcy stop foreclosure?

One of the most difficult and traumatic challenges that a person can face is the prospect of foreclosure. A person’s home normally is the center of life. The idea that one’s home might be taken away from him or she 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 hold the foreclosure

Chapter 7 versus Chapter 13 has 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 the 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 Chapter 13 because of some kind of temporary financial setback. Because, if it’s a 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.

bankruptcy means testing Bankruptcy Means Test for San Diego co.

What is the Bankruptcy Means Test?

The Bankruptcy Means Test is a 2005 addition to bankruptcy law. Created as a way of disqualifying petitions for Chapter 7 bankruptcy protection, the bankruptcy means test takes into consideration a lot of complex factors to force more people into Chapter 13 than Chapter 7. The creditors’ lobby loves the bankruptcy means test, because it means they get paid more, and more often than they used to.

If you are starting to do your research about bankruptcy then you should not do an online means test   They’re abysmal.  I have never ever seen one that came out correctly. Not a single one in nearly 10 years has been correctly done. Even getting close isn’isn’t good enough. This is not horseshoes or hand grenades.

San Diego County residents who file bankruptcy

First, the bankruptcy means analysis measures your income against median income in the area. If you earn below the median income, there is a better chance the Chapter 7 will work. Most people in San Diego who are thinking about bankruptcy or at least who I speak to earn more than the proposed income of the means test. However, if your income is higher than the median, the bankruptcy means test becomes much more challenging. Don’t try to figure it out on your own.

I take the time to go through the bankruptcy Means Examination with each person who sits down with me to do a Fresh Start Planning Session. For free. It takes me about an hour, and I do it every day, four times a day. An online bankruptcy means test calculator will not give you the answers you need If you’re online trying to do your own Means Test it is the first sign that you’re in enough trouble that you really need to talk to a good bankruptcy lawyer.

So go ahead, research online. Educate yourself. Then please save yourself and more important the stress and ask a bankruptcy lawyer to qualify you. The Bankruptcy Means Test is also supposed to help determine if you would be able to pay off your debts under Chapter 13 bankruptcy protection. Using the bankruptcy means test, and a couple of other forms and formulae, the court will calculate your disposable income. This is done by mixing fixed expenses and estimates for variable other expenses. If it looks like you can pay off the debts within a three to five-year time frame, you’re in Chapter 13, not a 7. Call me to schedule your Fresh Start Planning Session. You’ll get the answers you need, all you have to do is ask.

paul staley bankruptcy lawyer
The Law Office Of Paul Staley provides legal advice and representation for residents of San Diego County. The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.
Paul Staley
Bankruptcy Attorney
1901 1st Ave., FLR 1 San Diego, CA 92101
Phone: +619 235 40 95
Email: pstaley@paulstaley.com

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