Emergency Bankruptcy Filings Lancaster 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 in fact been on the increase since 2008. From 2007 to 2009 around 3 million homeowner were handling foreclosure. That number has actually tripled in size. This realty collapse integrated with financial difficulties and countless property owners being “upside down” or “underwater” in their houses has actually caused a property crisis in the United States.

Americans are turning to filing Chapter 13 bankruptcy in order to stop an approaching foreclosure sale. The initial purpose of Chapter 13 bankruptcy was to allow an individual who was dealing with financial mess up to place all their monetary responsibility into one big amount which would then be reorganized and paid off one month at a time over a 3 to 5 year duration.

In general, a Chapter 13 bankruptcy needs more than just a house being “undersea” for a court to rule in your favor. If your revenues is adequate for making your home loan payments and you have no authentic noteworthy financial obligation, then you probably will not get authorized for a Chapter 13 bankruptcy. Naturally, your scenarios might be various or there might be other conditions that utilize. However merely being “undersea” by your mortgage loan and behind on your payments is typically not enough to certify.

If your monetary circumstance is for a little while in disorder because of unanticipated costs, medical emergency situations, significant automobile repair work, and so on, informing your loan supplier is vital. It is really possible that the loan company may use a short-term deferment of your payments or supply you with re-payment terms which permit you to briefly decrease your payments owed in return for an extension of your mortgage. Getting in touch with an experienced, knowledgeable attorney– a genuine professional in Lancaster Bankruptcy– can provide you the recommendations and representation you require when facing such a situation.

Stop Foreclosure with a Bankruptcy Lawyer in Lancaster CA

When you submit either a Chapter 13 or Chapter 7 bankruptcy, the court automatically issues an order (called the order for relief) that consists of an “automated stay.” The automatic stay directs your creditors to stop their collection activities right away. No excuses. If your home is scheduled a foreclosure sale, the sale will be lawfully postponed while the bankruptcy is pending– normally for three to 4 months. Especially when you live in Lancaster California or in a nearby city

However, there are 2 exceptions to this general guideline:

Motion to raise the stay: If the loan service provider gets the bankruptcy court’s approval to proceed with the sale (by submitting a “movement to raise the stay”), you might not get the full 3 to four months. However even then, the bankruptcy will generally hold back the sale by a minimum of two months, and even more if the lending institution is sluggish in pursuing the motion to raise the automated stay.
Foreclosure notice already filed: Sadly, bankruptcy’s automatic stay won’t stop the clock on the advance notice that a lot of states require prior to a foreclosure sale can be held (or a movement to raise the stay can be submitted). For example, prior to selling a home in California, a loan service provider needs to offer the owner a minimum of 3 months’ notice. If you get a three-month notice of default, and then file for bankruptcy after two months have actually passed, the three-month period will expire after you have actually stayed in bankruptcy for only one month. At that time the loan provider could file a motion to lift the stay and ask the court for authorization to organize to stop the foreclosure sale. This does not suggest the loan company’s movement would be offered, however it is best to have a competent legal representative in your corner in an effort to prevent that from taking place.

Many people will do whatever they can to stay in their home for the indefinite future. If that describes you, and you’re behind on your home loan payments with no possible method to obtain present, the only technique 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– 5 years sometimes. However you’ll require sufficient income to at least meet your existing home mortgage payment at the same time you’re settling the arrange. Presuming you make all the required payments approximately completion of the payment strategy, you’ll prevent foreclosure and keep your home.

2nd and 3rd home mortgage payments:

Chapter 13 may similarly help you get rid of the payments on your 2nd or 3rd home mortgage. That’s because, if your first home mortgage is secured by the whole worth of your home (which is possible if the home has dropped in value), you may not have any equity with which to protect the later home mortgages. That allows the Chapter 13 court to “remove off” the 2nd and 3rd home loans and re-categorize them as unsecured financial obligation– which, under Chapter 13, takes last issue and often does not need to be repaid at all. All of this is common in California and throughout the region and remember, the time to do something is now.