Chapter 13 and Foreclosure

If your Fresno County home is in danger of foreclosure, filing for a Chapter 13 bankruptcy may be your best option. This is because Chapter 13 bankruptcy has several benefits that can help you to retain home ownership, while reducing or eliminating unsecured debt. This, in turn, can free up more of your resources so that you can afford your mortgage payment again, and retain your home. If you are facing mounting debt on top of your foreclosure concerns, filing for Chapter 13 bankruptcy can solve all of your problems effectively, giving you a fresh financial start.

There are several advantages to filing for a Chapter 13 bankruptcy in Fresno County if foreclosure is a concern. Of the many benefits that Chapter 13 bankruptcy provides, the most beneficial are:

1.      Automatic Stay - stop all collection activity, not just collection activity pertaining to your mortgage. This means that if you are behind on car payments, loan payments, or you owe back taxes, you can stop collection activities in one step.

2.      "Cram Down" Benefits - many of your unsecured loans and obligations can be modified by the bankruptcy judge. The judge can "cram down" what you owe on your auto loan to reflect its current value, for instance.

3.      Elimination of Second and Third Mortgages - if these mortgages are not secured by equity in your property, the bankruptcy judge can remove these mortgages, and you won't have to repay.

4.      Affordable repayment options - any arrears on your current mortgage can be repaid over the course of 3-5 years.

5.      Elimination of unsecured debt - credit card debt, personal loans, and other types of non-secured debt can be discharged after you complete your repayment plan, which leaves you with less financial obligations overall.

In order to take advantage of these key benefits, you need to be certain your Fresno County Chapter 13 Bankruptcy filing is both timely and complete. Failure to properly file your Chapter 13 bankruptcy could lead to a loss of the automatic stay, which would mean that your mortgage lender could continue the foreclosure process without any interference from the courts. If you are considering filing for bankruptcy protection in order to keep your home, contact us today. We offer a free, no risk initial case evaluation that can help you to understand exactly how Chapter 13 can save your home and help you retain your assets while reducing or eliminating debt obligations.