Financial problems can become overwhelming quickly, especially when missed mortgage payments, credit card balances, medical bills, or other debts put your home at risk. If you are facing foreclosure or struggling to keep up with your financial obligations, bankruptcy may provide a path toward greater financial stability. The Glendale bankruptcy and foreclosure lawyer team at Lerner and Rowe Law Group can help you understand your options and determine what steps may be available under federal bankruptcy law.
Call us today to schedule a free, no obligation consultation. Our Glendale bankruptcy attorneys are 100% dedicated to helping those in financial distress gain peace-of-mind.
How Bankruptcy May Help with Foreclosure
For many Glendale homeowners, the possibility of losing their home is one of the most stressful consequences of financial hardship. Falling behind on mortgage payments can lead to collection activity and, eventually, foreclosure proceedings.
Filing for bankruptcy can trigger an automatic stay that generally stops many collection actions, including foreclosure activity, while the bankruptcy case is pending. The automatic stay takes effect when a bankruptcy petition is filed, although exceptions and limitations can apply.
An automatic stay does not necessarily eliminate a mortgage debt or permanently prevent foreclosure. A secured creditor may ask the bankruptcy court for permission to proceed, and the outcome can depend on factors such as the debtor’s equity in the property, payment history, and whether the property is necessary for an effective reorganization.
Because timing can be critical, Glendale homeowners should consider speaking with a Glendale bankruptcy and foreclosure lawyer as soon as they begin falling behind on mortgage payments rather than waiting until a foreclosure sale is imminent.
Chapter 7 vs. Chapter 13 Bankruptcy
The type of bankruptcy that may make sense depends on your income, assets, debts, and financial goals. Lerner and Rowe Law Group handles bankruptcy matters that can include Chapter 7 and Chapter 13 filings, as well as debt-relief options.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is generally designed to provide eligible individuals with a discharge of certain qualifying unsecured debts. Depending on the circumstances, eliminating some unsecured debt may free up income that can be used for essential expenses, including housing.
However, Chapter 7 does not simply erase every type of debt or automatically protect a home from foreclosure permanently. Mortgage liens generally remain attached to the property, and homeowners who want to retain their property must understand their ongoing obligations.
An attorney can review your finances and explain whether Chapter 7 may fit your circumstances.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows eligible individuals with regular income to propose a court-approved repayment plan. For homeowners who have fallen behind on mortgage payments, Chapter 13 may sometimes provide an opportunity to address past-due amounts through the repayment process while maintaining current mortgage obligations.
The details matter. A repayment plan must meet applicable legal requirements, and filing bankruptcy does not mean a homeowner can simply stop making mortgage payments. Understanding the plan and your obligations before filing is essential.
Glendale Bankruptcy and Foreclosure Lawyer: Foreclosure Notice
Receiving a foreclosure notice can make it tempting to ignore the problem or hope that additional time will resolve the situation. Unfortunately, waiting can limit your options.
If you have received a foreclosure notice, are behind on your mortgage, or have been contacted by a lender about default, consider gathering your mortgage statements, foreclosure documents, income information, bank statements, and records of your other debts. These documents can help an attorney evaluate your financial situation and identify potential options.
Bankruptcy may be one option, but it is not necessarily the right solution for everyone. Depending on your circumstances, alternatives may include negotiating with creditors, pursuing a repayment arrangement, or considering other forms of debt relief.
Can Bankruptcy Stop a Foreclosure Sale?
A bankruptcy filing can trigger the automatic stay and may temporarily halt foreclosure-related activity. However, filing bankruptcy solely to delay foreclosure can have serious consequences, and the stay may not apply in every situation or may later be lifted by the bankruptcy court.
This is particularly important if you have previously filed bankruptcy or if a foreclosure sale is already scheduled. The Bankruptcy Code contains specific rules governing repeat filings and the duration or availability of the automatic stay.
A Glendale bankruptcy and foreclosure lawyer can review your circumstances and explain what a bankruptcy filing could mean for your home, debts, and financial future.
Contact a Glendale Bankruptcy and Foreclosure Lawyer Today
Financial problems can feel impossible to manage on your own, but you may have legal options. Lerner and Rowe Law Group can review your circumstances, explain potential debt-relief strategies, and help you understand what bankruptcy could mean for your home and financial future.
If you are facing foreclosure, struggling with overwhelming debt, or considering bankruptcy, contact Lerner and Rowe Law Group to schedule a consultation and learn more about your options. You can give us a call, fill out our contact form, or use LiveChat now to get started.