San Diego Bankruptcy Law Blog

Can bankruptcy help me stop or stall a foreclosure?

If you're like many Americans, you may be facing harsh financial times. You could even be facing foreclosure on your home. When foreclosure becomes a possibility, many people panic and do not know where to turn.

Panic is understandable, but it will not help you overcome the circumstances. Fortunately, there are other options that can be explored before simply accepting the foreclosure. One such possibility is filing a bankruptcy petition to at least stall the foreclosure process. While no one enjoys the prospect of bankruptcy, it can be a vital survival tool for thousands who have fallen on hard times.

Rebuilding your credit score after bankruptcy

While declaring bankruptcy inevitably hurts your credit score, the fact is that you already had a troublesome rating or you wouldn't be considering bankruptcy in the first place. Bankruptcy is the first step in a process of correcting your finances and building that score back up.

A Chapter 7 filing will stay on your report for 10 years and a Chapter 13 for 7 years. Yes, that is a long time, but it won't take that entire time to rebuild credibility. Instead, it takes careful budget management and a strategic approach to getting yourself back on your feet to the point where creditors trust you again. It doesn't take nearly as long as most people think.

What might I exempt with Chapter 13 plan?

Chapter 13 bankruptcy is attractive to debtors for many reasons, but chief among them tend to be the instant relief from collections efforts, the structured repayment plan that allows them to partially make good on their debts rather than simply abandoning them and the ability to retain many kinds of property that may be considered exempt from bankruptcy.

Unfortunately, Chapter 13 is not available to everyone, but may be a good fit for those who have sufficient means and assets to repay their debts, but are overwhelmed by collection efforts and perhaps many varying debts spread out across many creditors. When making an offer of repayment to creditors, the value of the property of the debtor that is not exempt is generally considered the minimum acceptable pay-off offer to be considered for discharge of debt.

What are pros and cons of Chapter 7 bankruptcy?

At a certain point, when the collections tactics and the pressure of mounting payments from being overwhelmed by debt have piled up for long enough, most people will consider filing for some form of bankruptcy. Clearly, this is not a decision to be taken lightly, and even a successful bankruptcy cannot solve all of your woes. Still, the power of the government to grant debt relief is an important one, and with proper preparation, a bankruptcy can help you get your affairs back on track.

If you have been considering filing a Chapter 7 bankruptcy, it's important to have a good understanding of what it does and does not do. Under Chapter 7, an individual is allowed to discharge debts in exchange for surrendering many kinds of personal property to a specially appointed trustee. The trustee holds property and administers it to make back money on behalf of creditors. Chapter 7 is attractive for many who are researching bankruptcy because it allows for the petitioner to retain many kinds of property, up to a certain value, especially if that property is deemed vital to his or her livelihood.

Is Chapter 13 bankruptcy right for me?

Thousands of individuals across the country spend every day weighed down by the constant calls of creditors seeking to collect on debts. Finding a way to get ahead of the snowball of debt can seem impossible, but fortunately, there are often more options than you may realize. If you have been researching serious forms of bankruptcy, you may be wondering if a Chapter 13 bankruptcy is the right solution for your situation. Chapter 13 offers hope for many, when it is used wisely.

One the chief advantages of a Chapter 13 bankruptcy is that it allows for the debtor to keep a property that they are making payments towards. Under Chapter 13, the debtor agrees to a payment plan to creditors over a term of three to five years, in which time creditors are forbidden from engaging in collection tactics. This plan is created using only the debtor's expendable income, which means that your extra money is tied up on repayment after paying for essentials like rent and food. For those who are swimming in collection calls and notices, this can be a real lifeline.

Can personal bankruptcy delay foreclosure proceedings?

When a California homeowner receives notice of foreclosure, a hasty reaction may cause more harm than good. Although there are different options available, a lack of information may lead to uninformed choices being made. The help of experienced legal counsel is available to explain the potential remedies, including personal bankruptcy protection.

Filing for bankruptcy may delay foreclosure on the home, but there is a lot to consider before taking such an important step. While a bankruptcy application comes with an automatic stay that is ordered by the court that includes a temporary hold on pending foreclosure proceedings, it is not a final order. Nevertheless, the stay may be long enough for the homeowner to catch up with mortgage payments. One exception is the lender's right to file a motion to lift the stay -- a right often exercised if the bankruptcy filing happens months after the foreclosure notice.

Thomas F. Miles, Attorney and Counselor at Law
152 West Park Ave
El Cajon, CA 92020
Telephone: 619-631-4833
Toll-Free: 866-471-0416
Fax: 619-588-6200

El Cajon Law Office

NACBA | National Association of Consumer Bankruptcy Attorneys

At the law office of Thomas F. Miles, Attorney and Counselor at Law, in El Cajon, we represent individuals throughout East San Diego County in California, including La Mesa, Lakeside, Chula Vista, Jamul, and Spring Valley,

Review Us