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.
The Bay Area comes under the jurisdiction of the U. S. Bankruptcy Court for the Northern District of California. This court has locations in San Francisco, San Jose, Oakland and Santa Rosa. Many petitions are rejected because people do not submit the required documentation or do not follow the proper format.
Most individuals file for Chapter Seven protection. Under the direction of a court appointed trustee, assets are liquidated and used to pay off creditors. Whatever remains of the debts will be discharged (as in eliminated). Some debts, such as child support payments, student loans, unpaid taxes and other dues owed to the government cannot be discharged.
However, all creditors are forced to halt recovery proceedings when the court issues an automatic stay. This stay remains in force until debtors exit from bankruptcies. In the case of a Chapter 13 filing, under which debtors can seek repayment plans over a period of up to five years, the stay is valid for the entire duration of the plan.
A home owner facing foreclosure should consider filing for Chapter 13 protection. It instantly puts a stop to the recovery actions, and gives the debtor time to figure out a way to save the home. The court will subsequently force the lender to agree to a feasible repayment plan for clearing unpaid mortgage payments.
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.
The Bay Area comes under the jurisdiction of the U. S. Bankruptcy Court for the Northern District of California. This court has locations in San Francisco, San Jose, Oakland and Santa Rosa. Many petitions are rejected because people do not submit the required documentation or do not follow the proper format.
Most individuals file for Chapter Seven protection. Under the direction of a court appointed trustee, assets are liquidated and used to pay off creditors. Whatever remains of the debts will be discharged (as in eliminated). Some debts, such as child support payments, student loans, unpaid taxes and other dues owed to the government cannot be discharged.
However, all creditors are forced to halt recovery proceedings when the court issues an automatic stay. This stay remains in force until debtors exit from bankruptcies. In the case of a Chapter 13 filing, under which debtors can seek repayment plans over a period of up to five years, the stay is valid for the entire duration of the plan.
A home owner facing foreclosure should consider filing for Chapter 13 protection. It instantly puts a stop to the recovery actions, and gives the debtor time to figure out a way to save the home. The court will subsequently force the lender to agree to a feasible repayment plan for clearing unpaid mortgage payments.
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.
About the Author:
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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