Bankruptcy Chapters

Home owners that have recently went through a California foreclosure may be surprised to find out that they cannot get approved for an apartment. Most apartment complexes now require a minimum credit score for approval to rent, and foreclosure often places a person below that credit score. This leaves the former home owner without their home and the inability to rent an apartment. 

What can a person do to avoid being truly homeless?

If you are facing a California foreclosure you should consider using bankruptcy as a form of debt relief. Through a Chapter 13 filing, home owners can have their mortgage and other debts restructured into an affordable monthly payment. The person filing the bankruptcy will not be evicted from their home due to foreclosure, and they will not have to worry about qualifying for an apartment.

Once you have filed bankruptcy the court will reorganize your debts according to your current income. Once the bankruptcy has been approved, your only obligation will be to make the monthly payment to the court. This method allows you to keep your home and become financially secure again.

Tags: California, California Foreclosure

For those of you that are not sure what a California foreclosure is, it is when a homeowner is not able to make principle and interest payments on their monthly mortgage. As a result, the mortgage company will take the property and sell it, which will be stated in the mortgage contract when the homeowner first signs it. This type of foreclosure varies among lenders; it all depends on each individual situation. 

As a homeowner, it is totally up to you if you would like to sell or keep your home during the California foreclosure process. If you prefer not to keep your home, it will actually be sold before it reaches the foreclosure process. The big advantage you will get from the home being sold before it reaches foreclosure is not receiving a foreclosure judgment on your credit rating. This works well for both parties because the lender is able to sell the home and the borrower can receive future financing without any negative ratings on their credit. This type of foreclosure is normally available to homeowners who have a great deal of equity available in their home.

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Tags: California, California Foreclsoure

Many California residents are facing financial crisis. If you are considering filing bankruptcy in California and you have property you would like to keep or if your income is too high to qualify for Chapter 7 Bankruptcy, you may be able to file Chapter 13 Bankruptcy. Many individuals will not be allowed to file Chapter 7 Bankruptcy due to changes in bankruptcy laws. Current bankruptcy law requires a “means test” be done to determine if you income is below the median income level for your state and/or you have enough disposable income to repay a portion of your debt. A California Bankruptcy Attorney can perform the means test for you to determine if you can file for Chapter 7 Bankruptcy in California.

Unlike Chapter 7 Bankruptcy, which is an immediate liquidation and discharge of your assets, filing Chapter 13 Bankruptcy will allow the debtor to pay back all or a portion of their debt. Chapter 13 Bankruptcy is a restructuring of your debt under a three to five year repayment schedule. Chapter 13 Bankruptcy is generally available to individuals who have a regular income and can commit to repaying their debt. To

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Tags: Bankruptcy California, California