Emergency Bankruptcy Filings Orange County 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 property owners were handling foreclosure. That number has actually tripled in size. This property collapse integrated with financial problems and numerous property owners being “upside down” or “underwater” in their homes has actually triggered a real estate crisis in the United States.

Americans are relying on filing Chapter 13 bankruptcy in order to stop an upcoming foreclosure sale. The initial purpose of Chapter 13 bankruptcy was to allow an individual who was facing financial ruin to position all of their monetary commitment into one huge quantity 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 house being “undersea” for a court to rule in your favor. If your revenues is adequate for making your mortgage payments and you have no authentic notable financial obligation, then you probably will not get authorized for a Chapter 13 bankruptcy. Of course, your situations might be different or there might be other conditions that utilize. But simply being “undersea” by your mortgage and behind on your payments is typically inadequate to qualify.

If your financial scenario is for a short while in disorder because of unexpected costs, medical emergencies, major vehicle repair work, and so on, notifying your loan provider is vital. It is extremely possible that the loan provider might utilize a short-term deferment of your payments or supply you with re-payment terms which enable you to briefly minimize your payments owed in return for an extension of your home loan. Contacting a knowledgeable, educated legal representative– a real specialist in Orange County Bankruptcy– can use you the recommendations and representation you require when dealing with such a scenario.

Stop Foreclosure with a Bankruptcy Lawyer in Orange County CA

When you send either a Chapter 13 or Chapter 7 bankruptcy, the court automatically releases an order (called the order for relief) that includes an “automated stay.” The automatic stay directs your lenders to stop their collection activities right away. No reasons. If your home is scheduled 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 Orange County California or in a nearby city

Nevertheless, there are 2 exceptions to this general standard:

Motion to raise the stay: If the loan provider obtains the bankruptcy court’s approval to proceed with the sale (by filing a “motion to raise the stay”), you might not get the full 3 to four months. But even then, the bankruptcy will typically hold off the sale by a minimum of two months, and even more if the loan provider is slow in pursuing the motion to raise the automated stay.
Foreclosure notice already filed: Sadly, bankruptcy’s automatic stay will not stop the clock on the advance notification that a lot of states require prior to a foreclosure sale can be held (or a motion to raise the stay can be sent). For instance, prior to offering a home in California, a loan supplier needs to give the owner a minimum of 3 months’ notice. If you get a three-month notification of default, and then declare bankruptcy after 2 months have in fact passed, the three-month duration will expire after you have stayed in bankruptcy for only one month. At that time the loan supplier could file a movement to lift the stay and ask the court for authorization to set up to stop the foreclosure sale. This does not suggest the loan provider’s movement would be offered, however it is best to have a skilled 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 practical technique to obtain current, the only approach to keep your home might be to file a Chapter 13 bankruptcy. Chapter 13 bankruptcy lets you pay off the “arrange” (late past due payments) over the length of a payment plan you propose– 5 years sometimes. Nevertheless you’ll require adequate earnings 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 as much as the end of the payment plan, you’ll prevent foreclosure and keep your home.

2nd and 3rd home mortgage payments:

Chapter 13 might similarly help you get rid of the payments on your 2nd or 3rd home mortgage. That’s because, if your first home mortgage is protected by the entire worth of your home (which is possible if the home has dropped in value), you might no longer have any equity with which to secure the later home loans. That permits the Chapter 13 court to “get rid of 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.