Emergency Bankruptcy Filings Huntington Beach CA

You may feel hopeless, and at the mercy of a faltering economy, but don’t despair. Relief is available, and there is no shame in using the law to protect yourself when you are buried under a pile of debt. You aren’t responsible for the economy, and you didn’t create the mortgage crisis. So use the law to protect yourself and your family.

A Second Chance

Bankruptcy laws are in place to help Americans get a second chance when they are snowed under by economic pressures. You have rights, including the right to be free from harassment by creditors. If your creditors are hounding you, you can make them pay. And if your debt has become more than you can manage, you may be able to file for bankruptcy.

Foreclosures have in fact been on the increase since 2008. From 2007 to 2009 around 3 million homeowner were handling foreclosure. That number has tripled in size. This real estate collapse incorporated with economic difficulties and numerous homeowner being “upside down” or “undersea” in their homes has actually triggered a property crisis in the United States.

Americans are turning to filing Chapter 13 bankruptcy in order to stop an upcoming foreclosure sale. The original function of Chapter 13 bankruptcy was to allow an individual who was facing monetary ruin to position all their financial commitment into one huge amount which would then be rearranged and paid off one month at a time over a 3 to 5 year duration.

In general, a Chapter 13 bankruptcy requires more than just a house being “underwater” for a court to rule in your favor. If your earnings is adequate for making your home mortgage payments and you have no real notable financial obligation, then you probably will not get approved for a Chapter 13 bankruptcy. Naturally, your scenarios might be different or there might be other conditions that use. But merely being “underwater” by your mortgage and behind on your payments is normally not enough to certify.

If your financial situation is for a moment in disorder because of unanticipated costs, medical emergencies, major automobile repairs, and so on, informing your loan service provider is crucial. It is very possible that the loan company may use a short-term deferment of your payments or supply you with re-payment terms which permit you to briefly lessen your payments owed in return for an extension of your home mortgage. Contacting a competent, knowledgeable legal representative– a genuine specialist in Huntington Beach Bankruptcy– can provide you the suggestions and representation you need when dealing with such a circumstance.

Stop Foreclosure with a Bankruptcy Lawyer in Huntington Beach CA

When you send either a Chapter 13 or Chapter 7 bankruptcy, the court instantly issues an order (called the order for relief) that includes an “automated stay.” The automated stay directs your financial institutions to stop their collection activities instantly. No excuses. If your home is scheduled a foreclosure sale, the sale will be lawfully postponed while the bankruptcy is pending– generally for 3 to four months. Especially when you live in Huntington Beach California or in a nearby city

Nevertheless, there are 2 exceptions to this general standard:

Motion to raise the stay: If the loan company acquires the bankruptcy court’s approval to proceed with the sale (by submitting a “motion to raise the stay”), you might not get the complete 3 to 4 months. However even then, the bankruptcy will typically hold off the sale by a minimum of 2 months, as well as more if the lending institution is sluggish in pursuing the motion to raise the automated stay.
Foreclosure notice already filed: Sadly, bankruptcy’s automatic stay won’t stop the clock on the advance alert that a lot of states need prior to a foreclosure sale can be held (or a motion to raise the stay can be sent). For example, prior to selling a home in California, a loan supplier has to give the owner a minimum of 3 months’ notification. If you get a three-month notice of default, then declare bankruptcy after 2 months have in fact passed, the three-month period will expire after you have remained in bankruptcy for only one month. At that time the loan service provider could file a movement to raise the stay and ask the court for authorization to organize to stop the foreclosure sale. This does not recommend the loan company’s motion would be offered, but it is best to have an experienced legal representative in your corner in an effort to prevent that from happening.

Lots of people will do whatever they can to stay in their house for the indefinite future. If that explains you, and you’re behind on your mortgage payments without any feasible method to obtain current, the only technique to keep your house might be to file a Chapter 13 bankruptcy. Chapter 13 bankruptcy lets you settle the “balance due” (late past due payments) over the length of a payment plan you propose– five years sometimes. Nevertheless you’ll require sufficient earnings to a minimum of satisfy your existing home mortgage payment at the same time you’re settling the balance due. Assuming you make all the required payments approximately the end of the payment plan, you’ll avoid foreclosure and keep your home.

2nd and 3rd home mortgage payments:

Chapter 13 might similarly assist you eliminate the payments on your 2nd or 3rd home mortgage. That’s because, if your very first home mortgage is secured by the entire worth of your home (which is possible if the home has dropped in value), you may not have any equity with which to protect the later home loans. That permits the Chapter 13 court to “remove off” the 2nd and 3rd home loans and re-categorize them as unsecured financial obligation– which, under Chapter 13, takes last issue and often does not need to be paid back at all. All of this is common in California and throughout the region and remember, the time to do something is now.