Can a Chapter 13 Stop Foreclosure?
September 21, 2012 in Bankruptcy, Chapter 13, Home Saving Strategies, Stop Foreclosure
Millions of Bankruptcies were filed in the US last year, and over 200,000 bankruptcies were filed in California alone. With so many homeowners underwater and with uncontainable debt, Chapter 13 has been a way to save homes for many families and restructure their debt. The main reason this particular chapter often saves homes is Chapter 13 bankruptcy can often stop foreclosure.
We learned from a local attorney that in California, under Chapter 13 homeowners are allowed to keep their property, but they must repay all or a portion of their debts over a set time period. Chapter 7 allows individuals to eliminate much of their debt by liquidating non-exempt property to repay creditors. The bankruptcy laws vary for businesses, so check the laws in your state.
Residents of the Golden State, specifically in the San Diego County area seeking a bankruptcy lawyer may find San Diego bankruptcy attorney Craig Trenton a viable advocate to help get a handle on overwhelming financial matters. We found out that attorney Craig Trenton would give free bankruptcy consultations to homeowners struggling in the San Diego Area. Many of these stressed homeowners may benefit from his Chapter 13, home saving strategy.
We also learned that underwater and overwhelmed homeowners often use Chapter 13 bankruptcy, and it may just work in your city and state as well. Many homeowners have experienced financial difficulties as a result of unexpected circumstances. Most creditors will not wait for a person’s financial situation to improve as their bills accumulate, in many of these cases, bankruptcy may be a viable option. Bankruptcy permits individuals and businesses to legally reduce, restructure or completely wipe out their debts, provided they meet stringent and specific requirements.
A chapter 13 may be just the tool needed to STOP Foreclosure on your home! Don’t let the banks bully you, get an attorney and fight back!
Sounds like a chapter 13 can stop and foreclosure in California, but I wonder if it can work in Arizona, and all the US states for that matter? I’ve read that it can also wipe out owed taxes, if they are older than 3 years old?
Thomas, you are correct. I walked a friend through this process. So far we have been waiting for her loan modification to go through.
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It’s custom made by us.
The loan mods in my area (Southern California) have picked up a little bit, but the banks delayed so long and forced 80% of the people that I knew that needed a mod into a foreclosure. It’s really sad, but they got away with it.
unfortunately here in ky, we are filing the 13 to stop procedures, but in our case its way past even the auction stages , no attorneys here even wanted to mess with our problem, however, I called every form of outreach program around way before the foreclosure even started, and wound up calling the Bar Association 1 1/2 yr later while waiting for a mod., and during the process they sold our home at auction and we had to get a defense attorney aggressive enough to handle this.BAC strung me along to the point of auction , so now I get to use the I know now what I didnt know then, so its okay. The 13 will come first…then litgation….then plan B , if need be.I know what they did to me and I am not a bit happy being screwed over like so many before me. I believe this is working in my favor as new info comes thru to help my case now anyway.Before, the other attorneys thought it was farfetched to even think it would go this far, my credit was perfect, I had no reason to file, but now they are like wondering how I made it this far along, they shouldve listened to me when I neede them most.775,00 entities are affected in ky, so far, and by the way more info is coming out daily….a whole lot more will find out they dont even own their homes. God Bless everyone involved , my heart really does go out ot all, if it wasnt for groups I joined like battling bank of america and finding banking bad, I swear I would go insane with no one to talk to. I owe alot of different people thanks on the web who diected me and guided me and taught me what was up, I really knew it was bad stuff going on…I am now able to direct people to the right resources locally, and send them to sights for themselves to help them also understand they are not alone.
Unfortunately you were dealing with a systematic theft, but as you said there are more people watching now. You can come here anytime to vent or discus this. We have a lot of people that will be joining and moderating the forum that we built for this very purpose. The goal is to help people who need it. We will be following your case now, please post this in the forum under the BANK that did this to you. Right now we have Wells, BOA and Chase. (You can cut and paste to save time.) “Dee” has schedule to blog there. Your story may make a great video? It sounds like they really wronged you… #BankingBad – I guess we will find out which bank in the forum post?
Anyone looking at this needs to consider listing their mortgage as UNSECURED debt if it was from 1998-2007 , unless the loan was from a small bank or credit union the held the loan in their own portfolio it was sold into securitization and in almost all of the cases the note transferred improperly … make them PROVE that they have a secured loan. Find a lawyer that “gets it” … The absolute last thing you want to do is reconfirm the debt or sign modification papers and lose that edge.
Can anybody do that? How does it work?