Bankruptcy is a legal process through which a homeowner (or any other borrower) can eliminate or repay all or part of their debt under the protection of a bankruptcy court. If you’re debating to file bankruptcy Chapter 7 or Chapter 13, it is always best to call and get free legal advice from our experienced bankruptcy lawyer.
Advantages of Filing Bankruptcy Chapter 7
- Filing for bankruptcy can delay foreclosure and stop a sale immediately and ease your debt burden. You will get a financial fresh start and can freely apply for new loans and credit cards.
- Lenders will be temporarily or even permanently restricted from collecting debts that you owed. Filing bankruptcy will stop harassing collection calls and menacing visits from creditors or their collection agents; including wage garnishment and auto repossessions.
- Filing bankruptcy does not mean you will lose your property. In California, the law is very clear that the home you live in is exempt from liquidation as long as your equity in the property is under a designated amount. You should call and speak with our Los Angeles bankruptcy attorney to find the best option for you if you are thinking about filing.
Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy
There are two common Bankruptcy chapters; Chapter 7 and Chapter 13. The differences between the two are important. In broad terms, Chapter 7 is filed to get rid of unwanted debt such as credit cards, medical bills, and stopping collections for wages that are being garnished. Chapter 13 is filed to repay missed mortgage or car payments, strip a 2nd home loan that is unsecured, and get caught up after falling behind on mortgage or car payments in a payment plan.
Who Can Qualify for Bankruptcy?
Chapter 7 bankruptcy is available to people who whose income is below the state median. Chapter 13 bankruptcy, on the other hand, is open to people whose incomes are sufficient for a reasonable repayment plan. You should consult with one of our Los Angeles bankruptcy attorneys for further guidance.
Can Bankruptcy Stop Foreclosure?
Chapter 7 bankruptcy delays foreclosure by 3 to 4 months. Chapter 13 bankruptcy delays foreclosure by a much longer period [up to 5 years] and often completely stops the foreclosure. Contact our Los Angeles bankruptcy law firm to learn more.
Will my property be protected when filing bankruptcy?
When filing Chapter 7 bankruptcy, many assets are protected from being sold to repay the debt; usually, credit cards and medical bills are wiped out without any sale of personal assets. When filing Chapter 7 bankruptcy, you get to keep your property as long as the terms of the plan are satisfied.
Will Bankruptcy Eliminate My Mortgage Payment?
Chapter 7 bankruptcies automatically discharge the amount you owe if you plan to surrender the property. Chapter 13 bankruptcies may eliminate the 2nd and 3rd mortgage but require that you pay the first mortgage.
How long will my bankruptcy take from the time of filing to discharge?
Chapter 7 bankruptcies take between 3 to 4 months while Chapter 13 bankruptcies take between 3 to 5 years from the time of filing to discharge.
Call Our Los Angeles Bankruptcy Attorney to Eliminate Debt and Stop Foreclosure
Our Los Angeles bankruptcy attorney takes the time to recommend the best option for you in your circumstances. If you are considering filing bankruptcy, call and get free legal advice from an experienced lawyer at Consumer Action Law Group. If you think you might need to file for bankruptcy to ease your struggles with mortgage repayment, contact our bankruptcy attorneys in Los Angeles at (818) 254-8413 for immediate help.