Thousands of northern California home owners affected by the mortgage crisis had to seek out a Bay Area CA bankruptcy lawyer to help them fight back against mortgage lenders. Many of these people filed for Chapter Seven or 13 protection specifically to save their homes from foreclosure. Here is a look at how this works.
Bay Area residents and businesses must file their petitions with the federal bankruptcy court for the Northern District of California. It has offices and court locations in San Jose, San Francisco, Santa Rosa and Oakland. Do remember that providing inaccurate information or incomplete documentation will get the petition rejected.
Chapter 7 is the most popular choice among individuals. A trustee appointed by the court will oversee the liquidation of the estate's assets and subsequent distribution of funds to creditors. If any debt still remains, it is discharged. However, the court does not have the authority to discharge certain types of debts such as unpaid taxes, student loans and child support payments.
Once a petition is accepted, the court issues an automatic stay to all listed lenders ordering them to hold off on recovery actions. The stay will be in force as long as the debtor does not exit from the bankruptcy process. In case it is a Chapter 13 filing, the stay is valid for the entire duration of the repayment plan, which can be anywhere from three to five years.
In fact, home owners facing foreclosure may be better served by the Chapter 13 reorganization process than a full-fledged Chapter 7 liquidation of assets. At the very least, it will provide a significant delay during which they can come up with a solution to keep the home. The court will help by forcing the lender to accept a repayment plan for clearing the mortgage payments that were missed.
Second and third mortgages are considered by the court as unsecured debt if the property value has dropped and only the first mortgage has the equity. The good news for home owners is that unsecured debts can be discharged through bankruptcies. Contact a Bay Area CA bankruptcy lawyer to find out more about how foreclosures and mortgage debts can be dealt with through bankruptcies.
Bay Area residents and businesses must file their petitions with the federal bankruptcy court for the Northern District of California. It has offices and court locations in San Jose, San Francisco, Santa Rosa and Oakland. Do remember that providing inaccurate information or incomplete documentation will get the petition rejected.
Chapter 7 is the most popular choice among individuals. A trustee appointed by the court will oversee the liquidation of the estate's assets and subsequent distribution of funds to creditors. If any debt still remains, it is discharged. However, the court does not have the authority to discharge certain types of debts such as unpaid taxes, student loans and child support payments.
Once a petition is accepted, the court issues an automatic stay to all listed lenders ordering them to hold off on recovery actions. The stay will be in force as long as the debtor does not exit from the bankruptcy process. In case it is a Chapter 13 filing, the stay is valid for the entire duration of the repayment plan, which can be anywhere from three to five years.
In fact, home owners facing foreclosure may be better served by the Chapter 13 reorganization process than a full-fledged Chapter 7 liquidation of assets. At the very least, it will provide a significant delay during which they can come up with a solution to keep the home. The court will help by forcing the lender to accept a repayment plan for clearing the mortgage payments that were missed.
Second and third mortgages are considered by the court as unsecured debt if the property value has dropped and only the first mortgage has the equity. The good news for home owners is that unsecured debts can be discharged through bankruptcies. Contact a Bay Area CA bankruptcy lawyer to find out more about how foreclosures and mortgage debts can be dealt with through bankruptcies.
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Find a review of the benefits of consulting a Bay Area CA bankruptcy lawyer and more information about a well-trained attorney at http://www.dowebankruptcylaw.com now.
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