Can Bankruptcy Stop Foreclosure? – Chapter 7 vs. Chapter 13

April 15, 2013 in Bankruptcy Attorney, Chapter 13, Chapter 7 Bankruptcy

Can Bankruptcy Stop Foreclosure

Can Bankruptcy Stop Foreclosure? Here at Banking Bad we get quite a few messages about ways people work to save their property. We do not give out legal advice, but are aware that a Chapter 13 bankruptcy can allow individuals to save their homes by restructuring their debt into a 3-year or 5-year payment plan. “Filing a Chapter 13 bankruptcy stops foreclosure proceedings, giving the homeowner a chance to save their home. Chapter 7 can possibly save a home by wiping out other debts, allowing the homeowner to focus on the home,” say San Diego bankruptcy attorney Craig Trenton.

Once an individual files a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, creditors cannot initiate or continue any legal action against the debtor. The Chapter 7-bankruptcy code gives an honest individual a “fresh start” by discharging certain debts. A Chapter 13 Bankruptcy restructures debt helping the debtor bring their financial liability current and greatly reducing the payments.

Banking Bad has worked quite a bit for fans and friends on the West Coast and has met a good attorney for people seeking a free bankruptcy consultation in San Diego. Bankruptcy Attorney Craig Trenton has helped many of our West Coast fans with free consultations and for that we thank him. If you think bankruptcy may be a good option for you and are in a state other than California, please check with your states bar association to find a reputable bankruptcy attorney who knows the bankruptcy laws of that particular state. Bankruptcy permits individuals and businesses to legally reduce, restructure, or completely wipe out their debt, provided they meet strict and detailed requirements. Each bankruptcy case is different and it is best to consult with a bankruptcy attorney to review your case and help decide what bankruptcy code better fits your financial needs.