As a Sacramento bankruptcy attorney I counsel many clients whose primary concern is being able to keep their home. As discussed in an earlier post this week, Chapter 7 can forestall an impending foreclosure sale, but it won't stop it outright. So how can Chapter 7 help homeowners?
The main way Chapter 7 benefits distressed homeowners is by freeing up their income stream, which allows them to stay current on their mortgage payments. Many people have so much debt to service that their mortgage payments take a back seat to the other necessities of life, such as medical or student loan bills. By discharging your unsecured debt, Chapter 7 enables you to concentrate your financial energy on staying current with your mortgage payments and in this way stay in your home.
Another way Chapter 7 can help homeowners is by potentially wiping out a second or third mortgage on their home. This is a possibility if your home has lost a lot of value.
In sum, bankruptcy can be an effective tool which allows debtors to achieve a measure of financial freedom and to concentrate their energies on the things that matter most in life.
I am a Sacramento bankruptcy attorney offering free consultations to people considering filing for bankruptcy. Our Sacramento office is located at 1104 Corporate Way, Sacramento, California 95831. We also have offices in Fairfield, Oakland, and Walnut Creek. Please call us today to schedule your free consultation at 925-932-7086.
