If you have a home that is going into foreclosure, there are two types of bankruptcy you may consider: Chapter 7 and Chapter 13. With Chapter 7 bankruptcy, there’s an automatic stay, or court order, to stop the foreclosure proceedings temporarily. However, you can still lose your home. If you want to save your home, Chapter 13 bankruptcy is a better choice, as it offers you a plan to repay whatever you’re behind on over a three to five year period, but you must also be able to afford the house payments themselves and make them on time. With Chapter 13 bankruptcy, it’s possible to get a loan modification, in which your payments and interest are reduced. To save your house by filing for Chapter 13 bankruptcy, contact an experienced bankruptcy attorney like David P. Gardner in Petaluma, California.
Stopping the Foreclosure Process in Petaluma
A foreclosure can either be judicial or nonjudicial. A nonjudicial foreclosure is simply one that takes place out of court. Both the California state government and the federal government prohibit a practice called “dual tracking.” In other words, a creditor may not move forward with a foreclosure or order of sale if they’ve received a mitigation application or a request for loan modification more than 37 days before the proposed sale of the house. The creditor has to say “yes” or “no” to the request before they can proceed. If this is a nonjudicial foreclosure and the creditor proceeds anyway, you can sue him or her for dual tracking. This may also stop the foreclosure, as the creditor violated the California Homeowner’s Bill of Rights. Besides bankruptcy, this is another way that a foreclosure can be stopped in Petaluma, California.
Schedule a Free Legal Consultation to Discuss Bankruptcy
If your home is about to go into foreclosure, you have options. The David P. Gardner Law Firm is ready to serve you and help you save the home you love. To schedule a free legal consultation to discuss bankruptcy or a lawsuit today, call us at (707) 658-4460.