Los Angeles, CA — 05/25/2020 — Chapter 13 attorneys at Consumer Action Law Group are open and helping consumers remotely in light of recent debt fluctuation across the nation.
Chapter 13 bankruptcy attorney Matthew Faler has noticed a recent rise in calls from individuals worried about their rental properties being foreclosed due to them skipping rent. Not only are regular property owners getting hurt by this, but regular homeowners and rental properties are also getting hurt by this recent pandemic.
According to attorney Faler, “Homeowners are having an increasingly difficult time keeping up with their monthly payments. Some have reached the point where they can no longer afford to pay their mortgage. Chapter 13 attorneys help individuals file a case to stop the banks from foreclosing your property.” This case, which is known as Chapter 13 bankruptcy, allows consumers to immediately stop any foreclosure proceedings by the bank to have some relief for no payments made.
A Chapter 13 bankruptcy, also known as the wage earner’s plan, allows individuals who have fallen into debt to set a proposed plan by the court to repay their debt in installment payments. With Chapter 13, individuals will need to provide proof of income because it’s mandatory to pay back the majority of the debt. Chapter 13 offers a better advantage in most cases than with liquidation under Chapter 7 because the debtors would keep their property. A chapter 13 case begins by filing a petition to the debtor’s county court. It is recommended to hire a chapter 13 bankruptcy attorney to guide through modification of a Chapter 13 plan and make the case go more smoothly with years of experience.
While Chapter 13 bankruptcy is a great opportunity to minimize debt and stop a foreclosure for a home, there are other ways to be effective during this pandemic.
Some solutions include, asking the bank for a stop payment to catch up on payments, asking the renter to provide payments in small increments, and getting a personal loan to cover payments. Four of the country’s biggest banks have even agreed to give California residents more time to make mortgage payments because they understand the situation. Renters are not the only ones with monthly bills, so it’s a good thing remedies are in place for homeowners of every situation.
Individuals who have a difficult time keeping up with their payments can contact the bankruptcy attorneys at Consumer Action Law Group. They offer free consultations to help homeowners with their next steps.