Is Filing for Chapter 13 Bankruptcy a Better Option Than Chapter 7 for Preventing Foreclosure on My Home?

Timing can make a major difference in the available options for preventing foreclosure. The best time to talk with Los Angeles foreclosures attorneys is as soon as you foresee problems in keeping current with mortgage payments. Depending on the timing and the details of your financial circumstances, either Chapter 13 or Chapter 7 bankruptcy may help you keep your home. However, a bankruptcy filing may not be your only alternative.

If you’re already in foreclosure or if it is imminent, a Los Angeles attorney for foreclosures may recommend Chapter 13 as an option. Any bankruptcy filing places a temporary stay on the foreclosure. Chapter 13 allows you up to five years to repay the outstanding debt, even as you renegotiate mortgage terms that let you stay current through more-affordable payments. Alternatively, if your payments are current but you are concerned about meeting the future payment schedule, Chapter 7 could potentially free up the funds you need by forgiving outstanding unsecured debt such as a large credit card balance.

The recent economic downturn forced many people to face varying types of unfortunate circumstances. The reduction in home values left many homeowners underwater with mortgages that are now higher than the value of their homes. Others continue to pay high interest rates because stricter lending rules prevent them from refinancing. If you address your concerns early, your attorney may recommend one of the new federal programs now available for avoiding foreclosure.

If you face foreclosure now or if you can foresee this serious issue in the future, you need an attorney who knows the law and all available legal options that can help. The Law Offices of Michael Jay Berger takes the time to get to know the details of your finances and your personal goals to present the solutions that make sense for you.