Can Bankruptcy Help You Keep Your Home?
Are you behind on your mortgage payments and worried about foreclosure? Are you wondering what your options are after getting notice of a trustee’s sale? Are you looking to either save your house or avoid deficiency balances and other consequences of foreclosure?
I’m Ivan Trahan, a California attorney based in Temecula. In more than 35 years of practicing bankruptcy law, I have used a number of methods to help clients stop foreclosure. To schedule a free consultation, contact me today.
Using Chapter 7 to Negotiate for Better Terms
Because a mortgage is a secured debt, it cannot be discharged in Chapter 7 bankruptcy, and filing Chapter 7 cannot permanently stop foreclosure. It can, however, buy you time and give you options so you can either avoid foreclosure or give up the house on better terms.
Many mortgage lenders are more willing to agree to mortgage modifications after debtors have gotten rid of their unsecured debts (such as credit card debts) by filing Chapter 7.
If you hire me to represent you in a Chapter 7, I will make sure you have the information you need to pursue modifications of the interest rates and repayment terms for your mortgage.
If it does not look like you will be able to obtain a mortgage modification that you can afford, we can give up your house as part of the Chapter 7 process and permanently discharge your mortgage debt, including any second mortgage you may have taken out.
Putting Your Arrears on an Affordable Payment Plan
Some people are also able to avoid foreclosure by filing Chapter 13 bankruptcy. Generally, this is a good option for people who are behind on their payments due to temporary job loss or other interruptions in their income but can now once again afford to make regular payments.
Filing Chapter 13 allows you to put your arrears (past due payments) on your repayment plan so that you can catch up with them over three to five years without interest.
The decision to file bankruptcy is a serious one and should ideally only be made after a consultation with an experienced lawyer. Contact me to discuss whether bankruptcy can help you avoid foreclosure.