At the Bereliani Law Firm, we understand just how stressful the prospect of foreclosure can be for you and your family. The thought of losing your home is a nightmare, especially when there are children involved. With years of experience in foreclosure law, bankruptcy lawyer Sanaz Sarah Bereliani can assist Los Angeles residents and people throughout Southern California in exploring their options, such as whether filing for Chapter 13 can help. There is no need to be embarrassed about your situation or pursuing bankruptcy. For many people, it marks a positive step towards building a new financial future and getting their family back on its feet.Filing for Chapter 13
A Chapter 13 bankruptcy proceeding is sometimes referred to as a “reorganization.” As this name suggests, it allows a debtor to create a repayment plan based on his or her existing debts and financial obligations at the time of filing. The repayment plan is based on the debtor’s future income and typically lasts between three to five years. If you make all the required payments throughout the duration of your payment plan, any remaining debt will be wiped clean at the end of the plan. The amount of your debt that you must repay over the lifetime of your plan in order to take advantage of this clean slate is determined by a number of factors.
If you are facing foreclosure, a Chapter 13 bankruptcy proceeding can potentially help you save your home. Once you file, an automatic stay is entered in any pending legal proceedings against you, including a foreclosure. The automatic stay acts like an injunction, or bar, against any creditors’ attempts to collect debts, enforce liens, or pursue foreclosure. The automatic stay is triggered at the moment you file your bankruptcy proceeding, and it applies in both Chapter 7 and Chapter 13 cases. Thus, it can give you a chance to repay missed mortgage payments and get back on track with your loan.Loan Modification
Many debtors also seek a loan modification while their Chapter 13 proceeding is pending. This is a great way to help you get back in control of your mortgage and prevent foreclosure. Your lender may provide you with a new interest rate, which will result in lower monthly payments. The lender may insist that you file a motion with the bankruptcy court in order to obtain approval of the loan modification while the bankruptcy is pending. Since the loan modification will lower your monthly payment, you may also need to modify your Chapter 13 repayment plan.
With more money in your budget, you may be able to pay off a greater percentage of your debts. Even if you are required to increase the amount of money you pay each month on your repayment plan, the long-term benefits of obtaining a loan modification may ease your financial burdens after you complete your repayment plan. In some instances, a loan modification may end the Chapter 13 proceeding.Additional Benefits of Using Chapter 13
There may be further reasons why filing for bankruptcy under Chapter 13 can help debtors get back on track. For example, you may be able to remove certain debts that were incurred during divorce proceedings, such as equalization payments. These debts cannot be resolved by filing under Chapter 7 or pursuing alternatives to bankruptcy. In addition, you can explore the possibility of filing a LAM motion to remove a second mortgage and other liens on your property. This may be available if you get an appraisal that shows the value of your home is les than what you owe on the first mortgage.Compassionate Los Angeles Lawyer Helping Individuals Reorganize Their Finances
The stress and uncertainty that a foreclosure proceeding can cause makes life hard enough. The last thing you want to deal with during this time is deciphering the complicated web of bankruptcy rules and laws. Fortunately, you do not have to go through this process alone. At the Bereliani Law Firm, bankruptcy attorney Sanaz Sarah Bereliani can guide Los Angeles residents through Chapter 13 or other forms of reorganization. We have helped numerous individuals throughout Southern California, including in Santa Barbara, Lancaster, Studio City, Woodland Hills, and across Orange County. We offer a free initial consultation and give each of our clients the compassion and personal attention that they deserve. Call us now at 1-818-920-8352 or complete our contact form to set up an appointment.