There are times when life brings financial hardship. Layoffs, disabling accidents, and natural disasters can all strike without warning. Individuals, families, and companies can all face financial crisis, and during such times of crisis, it may be that a foreclosure attorney who also practices bankruptcy might be able to provide the knowledge and skill you need to make finances workable.
While some people may feel worried about filing for bankruptcy, bankruptcy relief is often the best means of foreclosure avoidance. There are many benefits of filing for bankruptcy. Credit card debt and medical bills can be wiped out, a second mortgage can be eliminated, collection calls stop immediately, wage garnishment and repossessions can be stopped, and low credit scores usually improve after filing bankruptcy. Creditors know that an individual can only receive these benefits once every 7 years; so many people start to receive credit card offers after they file for bankruptcy.
One of the most common questions is: How does chapter 13 stop foreclosure? There is immediate legal protection from foreclosure the moment that a bankruptcy is filed with the court. A foreclosure is automatically stopped as long as there has not been a prior bankruptcy filing in the past 12 months. While a Chapter 13 bankruptcy is active, there is absolute legal protection from a foreclosure. There must be payments made towards a payment plan in a Chapter 13, which protects the property from foreclosure for the duration of the plan. In the event that an applicant for bankruptcy seeks to avoid the foreclosure and save the home, the Chapter 13 is usually preferable.
If you received a notice of trustee sale and your primary concern is to prevent the imminent foreclosure and seizure of your home then you need to seek the advice from our los angeles bankruptcy attorney to develop a Chapter 13 plan to reorganize your debt repayment and forestall the loss of your home.
For individuals desiring to go the bankruptcy route, there is the initial step of choosing between the Chapter 7 and Chapter 13. These are two very different forms of bankruptcy and they can have radically different outcomes and consequences. Chapter 7 bankruptcy calls for the liquidation of the applicant’s resources and forgiveness of qualified debts. On the other hand a Chapter 13 bankruptcy is more like a debt consolidation plan in which the applicant demonstrates that their disposable income is sufficient to repay the debt and their property may be protected for the duration of the repayment plan.
The choice between the two forms of bankruptcy relief requires careful consideration and the resulting consequences need to be understood and weighed. The importance of professional legal assistance cannot be over stated, especially when the applicant is under great financial, mental, and possibly physical stress. Different types of debt are treated differently, as there are different types of assets. To fully understand your situation, it’s best to call our foreclosure bankruptcy attorneys or an attorney that focuses on bankruptcy and foreclosure. Our firm offer free consultation. Call us today if you want to stop a foreclosure sale.