Legal Question in Bankruptcy in California

Re: my home

Mr Starrett is absolutely right about what can be done with your mortgages.

I do Chapter 13 "lien stripping" of 2nd and 3rd mortgages all the time. No matter what, if you cannot make a Chapter 13 plan work so the 1st mortgage (usually the oldest mortgage in time) can be paid and the arrears cured, there is nothing that will save your home from foreclosure in the long run. Whether you can support a plan needs to be looked at by a bankruptcy specialist with lots of years of experience. Do not use a paralegal (they have 0% success rate nowdays) or even an attorney unless they do NOTHING but bankruptcy and have done so for many years. Chapter 13 plans are not done well by the "johnny come lately" crowd that are just in it to make a buck. Get a real professional.

Given your Hayward Zip Code I would recommend you look up an attorney on the NATIONAL ASSOCIATION OF CONSUMER BANKRUPTCY ATTORNEYS web site. It is easy to find. (Lawguru prevents website addresses being placed here.)

At very worst, you can "buy time" using Chapter 7 bankruptcy to stop a foreclosure so you can stay longer and get the money together to move.

As a State Bar Certified Specialist with 31 years of doing this you need immediate advice based on your EXACT situation. I happen to be in Sacramento and do not handle the Northern District where you live.

In all likelyhood your 2nd and 3rd mortgages were not obtained the day you bought the house. If they are not purchase money mortgages you could lose the home AND still owe these mortgages!!! On top of that, if the home is sold you may actually LOSE the ability to file Chapter 7 bankruptcy. My practice is and for many years has been primarily focused on foreclosure and preforeclosure situations.

Do NOT wait. It is the worst thing you can do.

Re: my home

If you cannot negotiate a repayment plan with the lenders, Chapter 13 bankruptcy might allow you to propose a repayment plan with the court if you have enough income to make your current mortgage payments and pay an additional amount towards the past due balance(s). Chapter 13 repayment plans are very complicated and you should consult a local attorney who is a member of the National Association of Bankruptcy Attorneys.

In appropriate case, a Chapter 13 might even allow you to remove one or more of the mortgage. Suppose for example that your home is worth $350,000 and you owe $400,000 on the first deed of trust and $100,000 on the second deed of trust. You might be able to get ride of the $100,000 mortgage and treat it as unsecured debt just like a credit card. However, the process is complicated and you should definitely see a bankruptcy attorney before the foreclosure sale occurs.