San Bernardino Chapter 13 Bankruptcy and Foreclosure

Financial setbacks can make it difficult for even the most responsible individual to stay current on high mortgage payments. With the recent credit crisis’ effects being felt throughout much of the country and especially California and San Bernardino County, foreclosure may be an unwelcome reality for many who would otherwise have no problems paying their bills. Fortunately, there is hope, even if the foreclosure process has already started. Filing for San Bernardino Chapter 13 Bankruptcy may be able to save your home and get you back on track financially.

When you file for San Bernardino Chapter 13, an automatic stay goes into effect from the moment your filing is accepted by the courts. This automatic stay bars most types of collection activities, including foreclosure on a home. If all you need is time to negotiate with your lender, a Chapter 13 filing may give you enough time to accomplish that task. If, however, you cannot work with your lender, filing a San Bernardino Chapter 13 Bankruptcy may allow you to modify your current debt load so that you are able to make timely payments to your mortgage lender and retain ownership of your home.

Any back payments or arrears that you owe on the mortgage will be included in your Chapter 13 repayment plan, and must be repaid over the course of that repayment plan. This means that if you are several thousand dollars behind on your mortgage, you will have 3-5 years to pay that back, which results in a smaller payment each month, overall. You will, however, still need to make your regular mortgage payments in order to keep your current payments on schedule.  If you fall behind after you have filed for San Bernardino Chapter 13 Bankruptcy, your lender may be able to foreclose, even if you are making payments towards the arrears.

If you have a second or third mortgage on your home, you may be able to have those discharged, provided there isn’t enough equity in your home to secure them. This means that if you complete your repayment plan and the San Bernardino Chapter 13 Bankruptcy successfully, you will have only one mortgage on your home with a price that is affordable.

The benefits of San Bernardino Chapter 13 Bankruptcy when it comes to foreclosure depend upon each individual’s situation. If you are so far behind on your payments that even restructuring won’t help, you may want to consider other options such as a short sale or deed in lieu of foreclosure. Our team of reliable, experienced San Bernardino County Bankruptcy Attorneys can advise you on which course of action is most likely to help you in the long term.

Contact our office today and arrange for your free initial San Bernardino case evaluation right away. Chapter 13 bankruptcy can stop a foreclosure filing that is ongoing, so the sooner you act, the better your chances are of saving your home. Let our experience in San Bernardino County Bankruptcy Law work for you – with representation that is knowledgeable and reliable in the courts, you can rest assured that everything possible will be done to save your home.