Bankruptcy and Foreclosures in Las Vegas
No one wants to face the reality of losing their home in foreclosure. However, many people in Las Vegas and throughout Nevada are on the verge of a foreclosure action. Most people who are behind on their mortgage payments just need help to catch up on those payments. However, the mortgage lender refuses to work with them to set up an affordable repayment plan. The mortgage company wants the full past due amount now or it says it will file a foreclosure action.
Is there anything you can do to stop foreclosure without paying the full amount of past-due mortgage payments? Yes, you can contact our Las Vegas bankruptcy lawyers to discuss filing a Chapter 13 bankruptcy case.
How Can a Las Vegas Chapter 13 Bankruptcy Case Stop Foreclosure?
When you file your Chapter 13 bankruptcy petition, all debt collection efforts must stop, including foreclosure actions. Even if the mortgage company has an order of foreclosure and is about to sell your home at a foreclosure sale, the Chapter 13 bankruptcy case stops foreclosure. As long as you propose a confirmable Chapter 13 plan, pay your bankruptcy plan payments, and resume your regular mortgage payments, the lender has to work with you within your bankruptcy to resolve the past due payments.
The past-due mortgage payments are included in your Chapter 13 plan. The amount to catch up the mortgage can be spread out over 60 months, which makes it possible and affordable for you to catch up on the payments. You begin making your regular monthly payments outside of the Chapter 13 case.
Filing Chapter 13 helps you afford to keep your home in other ways. Your Chapter 13 plan can also include your car payments. In some cases, a debtor can lower the car payments through the Chapter 13 case. Also, your other debts are included in the Chapter 13 plan, so the only debt you should have to pay in addition to your Chapter 13 plan payment is the mortgage payment. By restructuring your debts, you can afford to keep your home.
If you have a second mortgage, you might be able to get rid of it without paying the full amount owed. Your home must be worth less than you owe on the first mortgage to value a second mortgage at zero.
How Does Chapter 7 Bankruptcy Help With a Foreclosure?
A Chapter 7 bankruptcy case is a liquidation case. There is not a repayment plan in Chapter 7. Therefore, you must catch up on the past due mortgage payments all at once to keep your home in Chapter 7. You may have two to four months to come up with the money to catch up on the mortgage payments.
However, Chapter 7 does help if you are upside down on your mortgage or you just want to get out of the mortgage.
By surrendering your home through a Chapter 7 bankruptcy, you avoid a deficiency judgment. A deficiency judgment is the amount of money the mortgage company is still owed after the home is sold at a foreclosure sale. The mortgage company can collect on the deficiency judgment if you surrender the home without filing for bankruptcy relief.
The Chapter 7 bankruptcy filing can get rid of the mortgage payments and unsecured debts you cannot pay to give you a fresh start to recover from a financial hardship.
Contact Our Las Vegas Bankruptcy Attorneys to Discuss Foreclosure and Bankruptcy
At Your Vegas Lawyers, LLC, we understand that losing your home is the last thing you want to consider. Our bankruptcy attorneys work with you to develop a plan that helps you keep your home in bankruptcy. If you need to get out from under the mortgage, we can help you find a way to do so that benefits you and protects your future financial stability.
Call our office today to schedule your free consultation with an experienced Las Vegas bankruptcy attorney. Learn about all your options before you decide how to deal with a foreclosure in Las Vegas.