Have you fallen behind on your mortgage payments? Or maybe you are in the process of foreclosure, also known a Trustee’s Sale? Perhaps filing a Chapter 13 Bankruptcy can
save your home. However, you must file prior to the Trustee’s sale of the property or bankruptcy can no longer save your home.  A Chapter 13 Bankruptcy is a powerful tool.

It immediately stops your creditors from collecting against you.  You then determine, according to federal and local guidelines, how much money you have left over to pay your creditors on a monthly basis, after your reasonable living expenses.  Whatever is left over is then used to pay your unsecured creditors for a period of either 36 or 60 months, depending upon your income.  Secured creditors generally have to be paid in full; however, there are exceptions.  Additionally, if you have a second or third trust deed that is completely unsecured because the value of your house fell, you may be able to completely get rid of the loan(s).
Once the petition is filed for a chapter 13, the filing “automatically stays” most collection actions against a debtor or the debtor’s properties. Creditors listed by the debtors will be given notice by the bankruptcy clerk that a stay is in effect. Creditors cannot take action in violation of the stay with respect to any forms of collections, wage garnishments or even make telephone calls demanding payments once notice has been given. In other words, filing a petition under chapter 13 automatically stays (stops) the foreclosure procedure and all other collection activity. The debtor (you) can then bring the past due balance to a current status in a specific amount of time, in about 3 to 5 years.
The Law Offices of Gloria D. Cordova provides chapter 13 services. Call to set up a free consultation to inquire about any concerns you may have. Please also check in regularly to learn more bankruptcy facts. And check us out on https://www.facebook.com/gcordovalaw?ref=hl.