Emergency Bankruptcy Filings San Jose 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 economic problems and countless homeowner being “upside down” or “underwater” in their houses has triggered a property crisis in the United States.

Americans are relying on filing Chapter 13 bankruptcy in order to stop an impending foreclosure sale. The initial function of Chapter 13 bankruptcy was to allow an individual who was dealing with monetary ruin to position all their financial commitment into one big amount which would then be reorganized 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 “underwater” for a court to rule in your favor. If your earnings is adequate for making your home loan payments and you have no real noteworthy financial commitment, then you more than likely will not get authorized for a Chapter 13 bankruptcy. Obviously, your situations might be different or there might be other conditions that utilize. However simply being “undersea” by your mortgage and behind on your payments is usually inadequate to certify.

If your monetary scenario is momentarily in disorder because of unexpected expenses, medical emergency situations, significant cars and truck repair work, etc., notifying your loan supplier is important. It is very possible that the loan service provider might use a short-term deferment of your payments or supply you with re-payment terms which permit you to briefly minimize your payments owed in return for an extension of your home mortgage. Contacting a competent, knowledgeable lawyer– a genuine expert in San Jose Bankruptcy– can provide you the recommendations and representation you require when facing such a situation.

Stop Foreclosure with a Bankruptcy Lawyer in San Jose 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 immediately. No excuses. If your home is scheduled a foreclosure sale, the sale will be legally postponed while the bankruptcy is pending– usually for three to 4 months. Especially when you live in San Jose California or in a nearby city

However, there are 2 exceptions to this basic guideline:

Motion to raise the stay: If the loan provider gets the bankruptcy court’s approval to proceed with the sale (by submitting a “motion to raise the stay”), you might not get the complete 3 to four months. But even then, the bankruptcy will usually hold off the sale by a minimum of two months, and even more if the loan provider is sluggish in pursuing the motion to raise the automated stay.
Foreclosure notification already submitted: Sadly, bankruptcy’s automatic stay won’t stop the clock on the advance alert that a great deal of states require prior to a foreclosure sale can be held (or a motion to raise the stay can be submitted). For example, prior to offering a home in California, a loan supplier has to provide the owner a minimum of 3 months’ notification. If you get a three-month notice of default, and after that apply for bankruptcy after two months have actually passed, the three-month period will expire after you have remained in bankruptcy for only one month. At that time the loan service provider might file a motion to raise the stay and ask the court for consent to arrange to stop the foreclosure sale. This does not suggest the loan service provider’s motion would be provided, however it is best to have a proficient attorney in your corner in an effort to prevent that from taking place.

Many individuals will do whatever they can to stay in their home for the indefinite future. If that explains you, and you’re behind on your mortgage payments with no feasible method to obtain current, the only technique to keep your house might be to file a Chapter 13 bankruptcy. Chapter 13 bankruptcy lets you settle the “arrange” (late past due payments) over the length of a payment plan you propose– 5 years in some cases. However you’ll require sufficient income to a minimum of fulfill your present home mortgage payment at the same time you’re settling the balance due. Assuming you make all the required payments as much as completion of the payment plan, you’ll avoid foreclosure and keep your house.

2nd and 3rd home mortgage payments:

Chapter 13 might likewise assist you get rid of the payments on your 2nd or 3rd home mortgage. That’s because, if your very first home mortgage is protected by the entire worth of your home (which is possible if the home has dropped in worth), you may no longer have any equity with which to secure the later home mortgages. That allows 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 concern and often does not have 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.