Bankruptcy Can Prevent Foreclosures and Repossessions


Sacramento bankruptcy attorneys handle a lot of Chapter 13 cases, specifically because people are trying to prevent the foreclosure of their home.

Having their car returned from repossession is just an added “side benefit”.  The downshift of the economy that occurred when housing prices tumbled (thank the Fed) created a situation for many homeowners that was entirely unanticipated and unfortunate.  Six years ago people were able to afford their homes, cars, and basic needs.  Now with the jobless rate as it is, rising interest rates, and cost of living increases people are lucky to have utilities and food.  The home loan modification programs turned out to be tougher to get into than promised and people are facing foreclosure in record numbers.  Chapter 13 enables people to stay in their homes rather than have them foreclosed upon.

Avoid Foreclose Speak With Our Sacramento Bankruptcy Attorneys Before Its To Late! Contact Us

One of our jobs as Sacramento bankruptcy attorneys is to explain to clients their various debt relief options.  I’ve found recently that people just want to know how to save their home.  I explain that home loan modifications are one means, but they are not guaranteed, and Chapter 13 is another.  Most bankruptcy attorneys like Chapter 13 because of the options that are available to their clients using this bankruptcy protection.

When you file for bankruptcy of any kind there is an “automatic stay” placed on collections.  Your creditors must cease contact with you and just wait.  This is one reason why threatening to file for bankruptcy can usually propel debt settlement negotiations or make your creditors a little more reasonable.  Creditors would rather have some money than potentially no money should you file for Chapter 7, but I’ll explain more about Chapter 7’s first come, first serve police in another post.  All foreclosure proceedings must halt (including sales) when Chapter 13 is filed.  Cars cannot be repossessed.  Collections agencies can no longer call you.

Sounds pretty peaceful, eh?

Chapter 13 doesn’t lower your mortgage payment, what it does is take the back payments and spread them out over 3-5 years making it something that is highly advantageous to people who have the potential to get back on their feet in that time.  Another thing that we Sacramento bankruptcy attorneys like to be the ones to tell our clients is that you pay the court appointed trustee.  You don’t have deal with creditors or collections agents.  One single payment to the court appointed trustee.

Find Out If Chapter 13 Is Right For You, Speak With Our Sacramento Bankruptcy Attorneys Today! (916) 446-1719

Chapter 13 can also either prevent your car from being repossessed or have it returned to you.  That’s a relief to many families who cannot pay to have the car returned to them, nor buy it back in auction.

Chapter 13 is a debt restructuring not a liquidation.  This makes a lot of my clients happy.  Their pride is salvaged, creditors get their money (albeit without the usury), and all is right with the world.  Or as close as any of us will come until the economy gets back on its feet again.

If you want to learn more about how to prevent foreclosure, just post a comment or give our office a call.  

I’d be happy to speak to you and set you on the right path.  After all, that’s what we Sacramento bankruptcy attorneys do.

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