Riverside County Chapter 13 and Foreclosure 

If you have fallen behind on your mortgage payments, your lender or bank may begin to take steps to foreclose on the property. Riverside foreclose typically occurs after a few months of past due payments, but in some instances, can occur if you miss only one payment to creditors. Fortunately, a Chapter 13 bankruptcy may be able to stop your foreclosure proceedings, even if the bank has already filed the foreclosure in court.

A Chapter 13 Bankruptcy may help to save your Riverside County home, if you can stick to the required repayment plan. You will be able to repay any arrears in the mortgage over a 3 to 5 year period, and keep your house in the meanwhile. You must continue to make your current mortgage payments, and you must follow through with the repayment plan, in order to take advantage of the protection that the Chapter 13 bankruptcy provides in this instance. While you are taking part in the repayment plan, your lender cannot foreclose on the property, and you will be able to claim any mortgage interest on your income taxes, just as you would if you were current. In many instances, back-owed mortgage payments are composed almost entirely of interest, which can be tax deductable.

Another benefit of  Riverside County Chapter 13 bankruptcy when it comes to foreclosure is the ability of the courts to adjust the mortgage agreement, making your payments more affordable, and the loan itself more reasonable, even after the bankruptcy is discharged. You may also be able to get rid of second or third mortgages on the house if they are not secured by equity in your home, leaving you clear of any additional financial obligations to those lenders once your repayment plan is completed.

In short, a Chapter 13 bankruptcy plan can make a lot of sense for those who have the income to continue making their housing payments, but who have temporarily fallen on hard times and are a few payments behind. Talk to one of our esteemed Riverside County Bankruptcy Attorneys today and arrange for a free initial case evaluation. We can advise you as to how Chapter 13 bankruptcy can help your situation, and we can even make an emergency filing if you need immediate relief in order to stay in your home.

Don’t delay – the current credit crisis and bank meltdowns have only made the foreclosure situation worse for many individuals. The sooner you seek relief, the more affordable your repayment plan will be, and the sooner you can get back on your feet and enjoy a fresh financial start.   Fill out our free online Riverside Bankruptcy case evaluation today.