Contra Costa County Chapter 7 filers
You can keep your house in a Chapter 7 bankruptcy.
Many people come to my free bankruptcy consultations thinking they cannot keep their home in a Chapter 7 bankruptcy. You can keep your home in either a Chapter 7 or a Chapter 13 bankruptcy.
As a Walnut Creek Bankruptcy lawyer I get more and more calls from the cities of Antioch, Pitsburgh, Oakley, Brentwood and Concord. Most of the callers got into financial troubles because of their mortgages. Some had adjustable rate mortgages that hiked upwards and most of my client's houses went down in value dramatically.
Walnut Creek Bankruptcy Lawyer
It does not always make sense to file Chapter 13 to save your home. If your first mortgage is less than the present market value and you have a fairly small second mortgage compared to the first mortgage the advantage you get from lean stripping the second mortgage by be outweighed by the three to five year payment plan you have to do. You may end up paying the same amount through the bankruptcy you would pay to the second mortgage. However if the second mortgage is significant, you have priority debts and your first mortgage is close to the fair market value of your home it may very well make sense to file for Chapter 13.
Filing Chapter 7 Bankruptcy in Contra Costa County
If your credit card debts, personal loans or medical bills are significant discharging all of this debt immediately is often a greater advantage then removing a second mortgage. You can find out what chapter saves you the most money by doing the "Means Test". The means test was introduced by the BABCPA in 2005 the bankruptcy reform act. Have a bankruptcy lawyer in Walnut Creek or close to you do the means test for you. This will give you clarity what Chapter will benefit you the most.
