Legal Question in Real Estate Law in California
mortgage default (california)
i have heard that once you are in default (morgage), you can possibly save your property by filing for bankruptcy. is this true and what type of bankruptcy would you file?
2 Answers from Attorneys
Re: mortgage default (california)
Filing for bankruptcy will halt all foreclosures and other collection action for the time being. The topic is very complicated and you would need to contact a bankruptcy lawyer in person for more information. Do not attempt to do it yourself or to use a helper who is not an experienced bankruptcy attorney.
Re: mortgage default (california)
Chapter 13 is a "reorganization" bankruptcy where you do not get rid of your debts, but you enter into a court approved plan to make up past due payments and keep making current payments over a 3-5 year period. You must have a continual source of income to fund the plan and if you start the plan and then fail to keep up, then your bankruptcy may be dismissed and a foreclosure can go forward. A chapter 7 bankruptcy is the traditional bankruptcy most people think of when they hear of a bankruptcy, but this will not help you keep your home if you are behind in payments.
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