Many clients or potential clients ask how Chapter 13 bankruptcy can help foreclosure, and whether Chapter 7 bankruptcy would help with foreclosure. Any bankruptcy petition will generally delay a foreclosure, because the filing of a bankruptcy petition automatically stop all collections activity, including foreclosures. There are exceptions when someone has filed multiple bankruptcies within a certain period, but for any first-time bankruptcy filer, filing bankruptcy automatically stops a foreclosure, even if it is immediately before the foreclosure.
Chapter 13 bankruptcy can help stop and solve a foreclosure problem altogether, because the filer can use their Chapter 13 plan to catch up on their mortgage payments and bring the loan current. In addition, the filer may be able to eliminate second mortgage or equity lines altogether if the value of the house is less than the balance of the first mortgage.
In short, Chapter 13 bankruptcy offers an immediate stop to foreclosure, and possibilities for completely fixing the forelcosure problem with a simple, low cost solution. At the same time, it can be used to wipe out dis-chargeable debts by paying pennies on the dollar, or to catch up on overdue taxes.
If you are at risk of foreclosure, you should discuss the matter with a bankruptcy attorney so you know your options. - honakerlegal
8/28/2012 05:30:55 am
Wonderful!! this is really one of the most beneficial blogs I’ve ever browsed on this subject.I am very glad to read such a great blog and thank you for sharing this good info with us.
8/28/2012 07:48:28 am
I simply started reading your posting and after few seconds, I found it worth it to read. I just read your mostly the many posts. Nice posts, thanks a lot for sharing the posts with. .
9/11/2012 11:29:50 pm
Your blog is extremely informative. I never considered that it was feasible to accomplish something like that until after I looked over your post.
9/28/2012 05:03:11 am
I am so grateful to find your particular post. I have bookmarked this website and I will keep visiting you for further such interesting posts.
9/28/2012 05:03:50 am
It is an enormously inspiring post .I am totally pleased by your excellent work. It contains really very useful information. Looking forward for your next post.
Leave a Reply.
Request a Consult or Call Back Online, or Call Us at 650.259.9200
Law Office of Jason Honaker