Emergency Bankruptcy Filings Bakersfield CA

You may feel hopeless, and at the mercy of a faltering economy, but don’t despair. Relief is available, and there is no shame in using the law to protect yourself when you are buried under a pile of debt. You aren’t responsible for the economy, and you didn’t create the mortgage crisis. So use the law to protect yourself and your family.

A Second Chance

Bankruptcy laws are in place to help Americans get a second chance when they are snowed under by economic pressures. You have rights, including the right to be free from harassment by creditors. If your creditors are hounding you, you can make them pay. And if your debt has become more than you can manage, you may be able to file for bankruptcy.

Foreclosures have actually been on the increase since 2008. From 2007 to 2009 around 3 million property owners were handling foreclosure. That number has tripled in size. This real estate collapse incorporated with economic troubles and numerous homeowner being “upside down” or “underwater” in their houses has actually triggered a real estate crisis in the United States.

Americans are relying on submitting Chapter 13 bankruptcy in order to stop an upcoming foreclosure sale. The initial function of Chapter 13 bankruptcy was to enable a person who was dealing with monetary mess up to position all of their monetary commitment into one huge amount which would then be restructured and paid off one month at a time over a 3 to 5 year period.

In general, a Chapter 13 bankruptcy requires more than simply a home being “undersea” for a court to rule in your favor. If your earnings is adequate for making your home mortgage payments and you have no real notable financial obligation, then you most likely will not get authorized for a Chapter 13 bankruptcy. Of course, your scenarios might be various or there might be other conditions that use. But merely being “underwater” by your mortgage and behind on your payments is typically insufficient to certify.

If your monetary situation is for a short time in disorder because of unexpected costs, medical emergency situations, significant cars and truck repair work, and so on, notifying your loan supplier is vital. It is very possible that the loan provider may utilize a short-term deferment of your payments or supply you with re-payment terms which allow you to briefly minimize your payments owed in return for an extension of your home mortgage. Calling a competent, knowledgeable lawyer– a genuine professional in Bakersfield Bankruptcy– can use you the recommendations and representation you require when facing such a scenario.

Stop Foreclosure with a Bankruptcy Lawyer in Bakersfield CA

When you send either a Chapter 13 or Chapter 7 bankruptcy, the court immediately provides an order (called the order for relief) that consists of an “automated stay.” The automatic stay directs your financial institutions to stop their collection activities immediately. No reasons. If your home is arranged for a foreclosure sale, the sale will be lawfully delayed while the bankruptcy is pending– typically for 3 to 4 months. Especially when you live in Bakersfield California or in a nearby city

However, there are 2 exceptions to this general standard:

Motion to raise the stay: If the loan service provider obtains the bankruptcy court’s approval to proceed with the sale (by submitting a “motion to raise the stay”), you may not get the full 3 to 4 months. But even then, the bankruptcy will usually hold off the sale by a minimum of 2 months, and even more if the loan provider is sluggish in pursuing the movement to lift the automated stay.
Foreclosure notification currently filed: Sadly, bankruptcy’s automatic stay won’t stop the clock on the advance notification that a great deal of states need prior to a foreclosure sale can be held (or a motion to raise the stay can be sent). For example, prior to selling a home in California, a loan service provider needs to provide the owner a minimum of 3 months’ notification. If you get a three-month notice of default, then file for bankruptcy after 2 months have actually passed, the three-month period will expire after you have actually remained in bankruptcy for only one month. At that time the loan company could file a motion to lift the stay and ask the court for authorization to arrange to stop the foreclosure sale. This does not recommend the loan service provider’s motion would be offered, however it is best to have a proficient legal representative in your corner in an effort to prevent that from happening.

Many people will do whatever they can to remain in their home for the indefinite future. If that describes you, and you’re behind on your mortgage payments without any feasible approach to obtain current, the only method to keep your home might be to file a Chapter 13 bankruptcy. Chapter 13 bankruptcy lets you settle the “arrange” (late overdue payments) over the length of a payment plan you propose– five years sometimes. However you’ll require sufficient earnings to a minimum of satisfy your existing home mortgage payment at the same time you’re settling the arrange. Assuming you make all the required payments approximately completion of the repayment strategy, you’ll avoid foreclosure and keep your home.

2nd and 3rd home mortgage payments:

Chapter 13 might also help you eliminate the payments on your 2nd or 3rd home mortgage. That’s because, if your very first home mortgage is secured by the entire worth of your home (which is possible if the home has actually dropped in value), you might no longer have any equity with which to protect the later home loans. That allows the Chapter 13 court to “remove off” the 2nd and 3rd mortgages and re-categorize them as unsecured debt– which, under Chapter 13, takes last issue and often does not need to be paid back at all. All of this is common in California and throughout the region and remember, the time to do something is now.