Woman holding a house key

How Bankruptcy Can Help Save Your Home

If you have fallen behind on your mortgage payments, your creditors or lenders will most likely do anything in their power to collect on that debt.

One of the most common collection practices by creditors is foreclosure, the forced sale of one’s home to pay off their financial obligations. We understand how important your home is to you, which is why our California legal team has outlined how bankruptcy may be able to safeguard your home.

The Benefit of Automatic Stay

You can experience the benefits of bankruptcy as soon as the process begins. Immediately after your bankruptcy papers are filed, “automatic stay” is then put into place.

Automatic stay is additional creditor protection given to bankruptcy filers. It makes any attempt by your creditor(s) or lender(s) to contact you or collect on your debts illegal, including the foreclosure of your home.

This benefit also stays in effect as long as your bankruptcy case lasts and gives you the proper amount of time to complete your bankruptcy without the constant harassment from creditors or lenders.

The Best Chapter to Save Your Home

A Chapter 13 bankruptcy is by far the most effective chapter to keep your home in your hands. Unlike other chapters of bankruptcy, Chapter 13 does not require you to liquidate any of your assets in order to pay off your debts or gain a discharge. Instead, the court issues you a new payment plan to restructure your debts in a way that makes it easier to pay them off.

Chapter 13 bankruptcy cases also last longer than those of Chapter 7—usually three to five years—providing plenty of time to pay off all of your financial obligations as long as consistent payments are made.

The way Chapter 13 stops foreclosures is found within the court-approved payment plan. It takes your mortgage debts that would otherwise require instant payment and spreads them out over the term of the bankruptcy.

Get in Touch With The Sexton Law Firm Today

We understand how stressful it can be to have the threat of your home being taken away thrust upon you. We have a team dedicated to providing you with compassionate and personalized services to help guide you to financial freedom.

If you would like to find out how bankruptcy can help save your home, contact us today through our website or give us a call at (619) 202-8976 to schedule your consultation today.