Is your home headed toward foreclosure? Are you hoping to stop your foreclosure sale by filing bankruptcy? If so, you came to right place. Call now to speak with one of our Everett foreclosure attorneys about your legal rights and options.
Experienced Chapter 7 & 13 bankruptcy help in Snohomish County.
Filing a Chapter 7 or Chapter 13 bankruptcy petition stops your scheduled foreclosure sale. Although your foreclosure sale can then be rescheduled for as soon as a few months later, filing bankruptcy will give you additional time to catch up on your mortgage, modify your mortgage, sell your home by short sale or at least give you time to move out of your home into a new residence if you do not wish to keep it.
The following are the primary reasons filing bankruptcy is utilized to stop a foreclosure sale:
1. Chapter 13 bankruptcy can allow you to catch up on your mortgage.
A temporary job loss or too much credit card debt can many times make people fall behind on their mortgage(s). If you are behind on your mortgage(s) and you home is headed or scheduled for foreclosure, filing a Chapter 13 Bankruptcy allow you to pay the amount you are behind on your mortgage in payments you can afford for up to 5 years. This applies to both first and second mortgages. However, you will also have to resume your regular mortgage payment as well paying an additional amount that you are behind mortgage(s).
In many cases you can also discharge most of all of your unsecured debt in this Chapter 13 bankruptcy process which may have affected your ability to keep current on your mortgage(s).
2. Getting rid of your second mortgage in Chapter 13 bankruptcy.
In this declining real estate market, if your home is appraised at less than the amount of your first mortgage, filing for Chapter 13 bankruptcy will stop your foreclosure proceedings and can effectively discharge your second and any other succeeding mortgages. You will need a professional, indisputable appraisal of your home that the value of your home is less than your first mortgage for a bankruptcy judge to approve the removal of your second mortgage. This process also requires litigation to discharge the second mortgage. Additional legal documents must filed and at least one additional hearing is also required to have the lien on your second mortgage striped from your home. An experienced bankruptcy attorney can represent you through this legal process.
3. Filing Chapter 13 bankruptcy to give you more time to vacate your home and still discharge other debt and/or restructure your car loans.
For people whose household income is too high to qualify for Chapter 7 bankruptcy, filing Chapter 13 bankruptcy will allow you to remain in your home for at least a few more months until you can save enough money to rent house or apartment and also usually discharge a significant portion of your unsecured debt through a Chapter 13 plan. You can also vacate your home in due time and restructure your car loans for up to a 5 year period. Visit our Everett Chapter 13 page for more deals regarding restructuring your car loan.
4. Filing Chapter 7 bankruptcy can give you more time to stay in your home and pursue other options.
If you are behind on your mortgage(s) and can afford the monthly payments, and your home is scheduled for a foreclosure sale, filing a Chapter 7 bankruptcy will stop your foreclosure sale and give you more time to pursue other options. For example, Chapter 7 bankruptcy, will cancel your foreclosure sale and allow you more time to try to modify your mortgage, short sale your home, catch up with your mortgage (in one lump sum if you can afford it), or simply allow you to remain in your home for at least a few more months until you can save enough money to rent house or apartment and also discharge your unsecured debt.
This being said, you should not file Chapter 7 bankruptcy for the sole reason to stop your scheduled foreclosure sale. You should only do so in conjunction with discharging your unsecured debt (credit cards, medical bills, second mortgage deficiency, etc.).
Connect with an Everett bankruptcy lawyer today for a FREE consultation!
Our Everett home foreclosure lawyers serving Snohomish County represent individuals throughout the Great Puget Sound region, including Everett, Arlington, Mukilteo, Mountlake Terrace, Snohomish, Marysville, Lynnwood, Lake Stevens, Edmonds, Brier, Bothell, and Stanwood, WA. We understand that you have questions are worried about what the future may hold if you do not take action sooner than later. Call our Everett bankruptcy attorneys today – our team can help you stop your home foreclosure and get you on the roadway to financial recovery!
Need help? Email us today.
The Central Building - 1721 Hewitt Ave #521B
Everett, WA 98201
Our debt relief and bankruptcy lawyers serve clients throughout Snohomish County and Western Washington. These cities include, but are not limited to the following localities: Everett, Arlington, Marysville, Edmonds, Brier, Lynnwood, Monroe, Bothell, Lake Stevens, Mukilteo, Mountlake Terrace, and Snohomish. If you live in Snohomish County and have questions about your Washington State bankruptcy and debt relief options, we invite you to call our offices for a free, no obligation initial consultation.