Facing Foreclosure? How Bankruptcy Can Help

So, you’ve opened your mail and find a notice of default on your house payments from your mortgage lender. You already have overwhelming bills, but now you’re terrified that you may lose your home soon. Don’t despair! A bankruptcy can protect your home from foreclosure.  When you file for bankruptcy in Petaluma, California, there is an automatic stay on the foreclosure proceedings. Depending on the type of bankruptcy, this may be temporary or permanent, and you may be able to keep the home you’ve grown to love. The first step is to call a bankruptcy attorney, such as David P. Gardner, to assess your financial situation and determine what the next step should be.

Types of Bankruptcy in Petaluma

The two most commonly used types of bankruptcy in Petaluma are Chapter 7 and Chapter 13.  You can file for Chapter 7 bankruptcy if your income is below the median for a household of your size. In Chapter 7, most of your debts are discharged, except those that involve alimony, child support, taxes, and legal fines. During Chapter 7 bankruptcy, your assets are also turned over to a trustee who determines a way to use them to pay off debts. However, some of your assets will be exempt from this process, like your stove, refrigerator, and other basics.

Meanwhile, you can file for Chapter 13 bankruptcy, if your income is higher than the median. Chapter 13 bankruptcy allows you can keep more of your property, like your home, but you must pay back more of your debts, and can do so over time. A skilled bankruptcy attorney in Petaluma, California can help you file for the type that works best for you.

Call a Bankruptcy Lawyer to Learn More About Your Options

If you’re facing bankruptcy, call a bankruptcy lawyer to learn more about your options. At the David P. Gardner Law Firm in Petaluma, we offer a free consultation to evaluate your unique situation. Call (707) 658-4460 and let us light the path for you.

Leave a Comment

Live help is online...