Bankruptcy Stops Foreclosure And Repossession
In danger of losing your house or your vehicle? We can intervene quickly, even if the lender has already started proceedings to repossess. Do not wait until it’s too late. The Hedtke Law Firm offers a FREE consultation at three locations:
West Covina • Upland • Moreno Valley
Act Now To Stop Home Foreclosure
In almost all cases, as soon as you file for bankruptcy an automatic stay is entered. Pending foreclosure and seizure actions stop, even if a sheriff’s sale has already been set. To protect your home, you will be required to pay the monthly mortgage payments that come due after filing.
- In Chapter 13, your mortgage arrears may be repaid over a period of time as long as five years.
- In a Chapter 7, if you want to keep your home, you would have to make sure your equity does not exceed the exemptable limits.
The Hedtke Law Firm will crunch the numbers and sit down with you to help you decide if you can realistically afford to keep your home. (If not, we can discuss your options to surrender or sell the property.)
Prevent Vehicle Repossession
Chapter 13 bankruptcy may be the best solution for saving your car or truck. Repossession protects against repossession as long as you continue paying for the vehicle or pay the vehicle in your Chapter 13 Plan.
(1) You continue making the original payments until the vehicle is paid off, with any arrears included in your Chapter 13 or you can sometimes pay only the present value of the vehicle at a reduced interest rate through your Chapter 13 Plan.
(2) The “cram down” law applies if you have owned the vehicle for 910 days (2 1/2 years) or more. You would be required to pay only the current retail replacement value of the vehicle, instead of the full balance of the debt, quite possibly saving you thousands of dollars. Additionally, in most cases, the interest rate can be lowered.
Did you know? California severely restricts “self-help” repossession. The lender or car dealer cannot hire a “repo man” to take your car in the dead of night without first complying with California’s very restrictive self-help law or one of the other methods of legally taking your vehicle.
Regardless of the method, we usually can get your vehicle back to you by filing a Chapter 13. It is important you consult with us as soon as possible after the seizure.
Let Us Help You
If you are past due on your mortgage, vehicle loan or any secured loan, please contact us today at 626-593-1556 to take action to protect your assets. Do not sign a voluntary surrender or any other documents relating to your vehicle until you have consulted with an attorney.