How does a Foreclosure Attorney use Bankruptcy

Foreclosure is a legal process that can have serious implications for homeowners. In many cases, homeowners struggling with mortgage payments can find solace in hiring a foreclosure attorney who can use bankruptcy laws to minimize the chances of a foreclosure sale. By understanding how this process works, homeowners can make informed decisions about their financial future.

At Liviakis Law Firm, we have a team of experienced foreclosure attorneys who are well-versed in foreclosure prevention and bankruptcy laws. Our aim is to provide clients with the best possible legal advice to help them avoid foreclosure and protect their homes.

One of the ways that a foreclosure attorney can help is by filing for bankruptcy on behalf of a homeowner. This is a legal process that can temporarily stop foreclosure proceedings and provide the homeowner with time to reorganize their finances.

There are two main types of personal bankruptcy that a homeowner can file for: Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, the homeowner’s assets are sold off to repay their debts. However, this type of bankruptcy often allows the homeowner to sell their home. On the other hand, a Chapter 13 bankruptcy allows the homeowner to create a repayment plan to pay off their debts over a period of three to five years. This type of bankruptcy can also help the homeowner avoid foreclosure by allowing them to catch up on missed mortgage payments through the repayment plan.

Bankruptcy can be a powerful tool in the fight against foreclosure. Filing for bankruptcy immediately triggers what is known as an “automatic stay,” which temporarily halts all collection efforts, including foreclosure sales. This gives the homeowner some breathing room to restructure their debts and work out a plan to keep their home.

While bankruptcy can be an effective strategy to avoid foreclosure, it’s not a decision to be taken lightly. Filing for bankruptcy can have long-term implications for a person’s credit score and financial future. Therefore, it’s crucial to consult with a foreclosure attorney before making this decision.

At Liviakis Law Firm, our foreclosure attorneys can guide you through this complex process. We can assess your financial situation, explain the pros and cons of filing for bankruptcy, and help you decide if this is the right course of action for you.

Our goal is to help you maintain ownership of your home and regain control over your financial future. If you’re facing the possibility of foreclosure and need legal advice, contact Liviakis Law Firm at 916 459 2364 today.

Remember, foreclosure doesn’t have to be inevitable. With the right legal guidance and a strategic approach to debt management, it’s possible to avoid foreclosure and safeguard your home.