The filing of a bankruptcy case will stop foreclosure of your home and all other collection activity. The automatic stay of all collection activity starts as soon as your case is filed. Please give us call toll free at 1-877-963-9543 to schedule a free consultation and find out is bankruptcy can help save your home from foreclosure. All of our consultations are with attorneys only, not paralegals or legal assistants.
- Chapter 13 Bankruptcy
- Get Rid of Underwater Second Mortgages and Equity Lines of Credit
- Lower Your Car Payment
- Discharge or Payoff Taxes Without Interest or Penalties
- Unsecured Debts With No Interest
There are a number ways filing a chapter 13 bankruptcy can help you. The most common is to pay back the missed mortgage payments over the life of the chapter 13 plan of reorganization. Most plans last between 36 and 60 months. The plan or reorganization will generally spread out the amount you are behind over the whole plan of reorganization. If you are behind $20,000, then divide $20,000 by 60 months, and this will give you a fair estimate of your monthly chapter 13 plan payment if the plan is 60 months in length. There will most likely be other amounts included in your plan other than just the missed mortgage payments though.
The foreclosure process starts by your mortgage holder filing a notice of default with the county in which you live. You will be served with the notice of default. If you are behind on your mortgage payments it is very important that you read all of the mail you receive. You will get notice of the start of the California Non-judicial or Judicial foreclosure of your home. As soon as your bankruptcy case is filed we will fax notice of the bankruptcy filing to the foreclosure sale trustee and verify they received notice. Once they receive notice the foreclosure process or foreclosure sale will be stopped.
Your mortgage holder will then file a proof of claim with the bankruptcy court evidencing the amount of your mortgage payments they believe you are behind. It is not uncommon for your mortgage holder to file a proof of their claim with a number you do not agree with. If so, then the claim must be objected to and proof must be presented of the true amount you are behind on your mortgage. When mortgage payments are missed and property taxes are unpaid your mortgage company usually creates an escrow account to start charging you for property taxes and insurance. This is usually the most common disagreement or source of confusion as to why your mortgage company has filed a proof of claim with an amount higher than what you believe is accurate.