When you find yourself in a situation where you’ve missed a couple of mortgage payments and you’re racked up a fair amount of debt, it’s essential to keep looking forward and not blame yourself. Things like these happen, and you can’t go back in time to fix it. What you can do is hire San Diego’s most reputable foreclosure attorneys and find the most suitable way to deal with your foreclosure and your debt. One of, if not the best, method is bankruptcy.
How can bankruptcy help with my foreclosure?
First and foremost, don’t perceive bankruptcy as the end of the road and the last resort for dealing with your foreclosure. It’s not. Actually, bankruptcy signals a new financial beginning free from the debts of your past.
That out of the way, it’s important to not postpone your bankruptcy claim and go for it as soon as the first signs of imminent foreclosure appear. Why? Because bankruptcy, both Chapter 13 and Chapter 7, can be of enormous help with your foreclosure.
Automatic stay is an extremely potent tool that bankruptcy brings into your arsenal. As soon as you file for bankruptcy, the court issues a document called Order for Relief. This order is what actually grants automatic stay, preventing creditors from immediately grabbing hold of your properties and putting a stop to all collection attempts.
This means that even if there’s a scheduled foreclosure sale of your home, the creditors have to postpone it by law until you finalize your bankruptcy proceedings. Generally, it takes three or four months to finish your process of filing for bankruptcy.
How Chapter 13 helps
When it comes to other help you can receive from this form of bankruptcy, the most important aspect is your repayment plan. So, this bankruptcy lets you gather all your current debts and create a long-term plan which states the amount of money you’ll be able to set aside each month to repay your creditors.
Your payments remain manageable, and you remain in possession of your home for as long as you’re making regular installments. This is a great way of facing your debts and repaying your mortgage without placing too much of a strain on your monthly finances.
Another great thing about this form of bankruptcy is that it categorizes 2nd and 3rd mortgages as unsecured debt, which means they have low priority in bankruptcy and that you typically don’t have to pay it back. However, know that this is only possible in case your primary mortgage is secured under the entire value of your household, meaning there’s no equity left to secure your other mortgages.
How Chapter 7 helps
This form of bankruptcy also serves to cancel the debts your home secures, including home equity loans and mortgages. However, know that this is only a temporary relief that allows you to sort your finances out before you keep making payments. Chapter 7 doesn’t lift the lien and will not lift the process of foreclosure. That’s why you have to be careful and become current on your obligations to finally put a stop to foreclosure with the help of this form of bankruptcy.
Who are San Diego’s top foreclosure attorneys to help me with my financial difficulties?
Bankruptcy is one of the best and most efficient ways to put a stop to your foreclosure. No need to bother with the details regarding your foreclosure and you don’t have to waste your energy getting familiar with the foreclosure process in the state of California. However, in order to ensure a swift and effective bankruptcy procedure that will prevent foreclosure on your home, you have to hire the leading legal representatives for your claim.
That’s where Bankruptcy Law Offices of Mark L. Miller comes in. We’re here to help you put a stop to your foreclosure, successfully fire for bankruptcy, and get your financial future back into your own hands. All you have to do is contact us and schedule a free consultation. You’ll see, once we formulate a plan, you’ll be able to fully enjoy Cabrillo National Monument without a worry on your mind once again. Give us a call today!