You may not lose the property if you apply for Chapter 7 bankruptcy provided you don't have considerable home value and the payment is due. Most of the users who claim Chapter 7 bankruptcy are allowed to have their possessions. If you are struggling financially, though, you may choose to take a different approach to bankruptcy, like declaring Chapter 13 bankruptcy.
If you're considering Chapter 7 bankruptcy and seem to be concerned about losing your home in Monterey Park, California and surrounding areas, It is best to call a lawyer at Fong Law Group so we can assist you, and point you in the right direction for the options that are available for you.
Home and Bankruptcy
If you're behind with the payments, Chapter 7 will not assist you to retain your house. If you're behind on your payments or on the verge of losing your home, Chapter 7 won't help you. So, until you can work out a deal with the lender separate from the bankruptcy, you're likely to lose the home. When this happens, there are other options such as Chapter 13 bankruptcy; this is why it is best to call an attorney that can discuss all your options so you can keep your house.
Will My House Be Sold by a Bankruptcy Trustee?
If you do not have equity in the home as collateral or can exclude (protect) the property utilizing the homestead claim, you can protect the house in Chapter 7 bankruptcy. The trustee designated to handle the case will not sell it since there will be no money to give to the debt holders if there is no available equity.
However, this does not indicate that you will be able to maintain the house. Whenever you declare bankruptcy, you should be current on all payments, and you should be able to keep current in the future. You fear losing the home to foreclosure if you don't during a Chapter 7. If you are behind on payments, a Chapter 13 might be the right option for you, this is why it is essential to speak with a lawyer so they can advise you.
Does Bankruptcy Chapter 7 Assist with Foreclosure?
Although Chapter 7 bankruptcy may offer temporary protection from foreclosure, it will not assist you in keeping your house. It lacks a means for paying off debts or effectively stopping the foreclosure process.
Consider the below mentioned methods:
- Before filing for bankruptcy, try to work out a deal with the lender. If you are behind in your mortgage payments, you may be able to negotiate a settlement with your borrower, informally or via a more official mortgage work, in which the creditor offers to renegotiate the repayment schedule by restructuring or altering the loan. If you pursue this route, make sure you finish the mortgage modification process before filing chapter 7 bankruptcies. Otherwise, any continuing conversations will almost certainly be disrupted by the bankruptcy. (In Foreclosure, you will discover data on lender negotiations and home loans.)
- Take Chapter 13 bankruptcy as an example. In this, you may save the house if you have not paid the installments and now have sufficient money to keep pace on the loan arrearage with time. The automatic stay once you file bankruptcy stops the lender from proceeding with foreclosure procedures after you file bankruptcy.
Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.