Those who purchase a home never expect it to go into foreclosure. Unfortunately, there are a variety of life circumstances that can change one’s plans. The loss of a job, a recession, medical issues, and other factors can quickly cause someone to fall behind on their mortgage payments. Fortunately, the law allows a homeowner to protect their residence through the bankruptcy process. Our Las Vegas bankruptcy lawyer helps with preventing foreclosure. If you or a family member are in need of assistance then contact us today to schedule an initial consultation.
Lawyer helping Las Vegas residents to prevent foreclosure through bankruptcy
Filing for either Chapter 7 or Chapter 13 bankruptcy can prevent a home from being foreclosed upon. Once the case is filed then an “automatic stay” will be issued and this will prevent foreclosure proceedings (note that the bankruptcy must be filed before the sale date is held). A plan for handling one’s debts is submitted as part of the Chapter 13 filing. This plan will include a provision for catching up on past-due payments. The Chapter 13 payment plan will typically last three to five years. As long as the debtor makes their payments, and makes all new mortgage payments, they will emerge from bankruptcy clear of foreclosure. Also, depending on the circumstances, it may be possible to remove a second mortgage from a home through bankruptcy due to a process known as “lien stripping.”
The first step in filing for bankruptcy is to apply the “means test.” This determines whether one must file under Chapter 7 or Chapter 13. The latter is for higher earners and, typically, one seeking to stop a foreclosure will be filing Chapter 13. The debtor will have the benefit of several exemptions when determining the amount to be repaid under the plan. One such exemption is for a home which has had a homestead placed upon it. If the equity of the home is less than the exemption then the Bankruptcy Court will not consider the equity as being available for the payment of debts. This means that preventing a foreclosure, in many cases, will allow a homeowner to preserve their equity while clearing many other debts.
Once a Petition is filed with the Bankruptcy Court then an “automatic stay” will be put in place. This prevents a foreclosure sale. A Trustee will oversee the handling of the Chapter 13 repayment plan and, once the payments are completed, the debtor will emerge from bankruptcy. In addition to saving one’s home, and potentially stripping away a second mortgage, this process will make house payments more affordable through the elimination of credit card debt, the discharge of medical bills, etc. An attorney can help you to ensure that your case is handled properly and that your Petition is not dismissed due to an error.
Nikki Dupree-O’Brien is a Las Vegas bankruptcy lawyer helping individuals to prevent foreclosure. She will use your initial consultation to gain a complete understanding of your situation and to review your finances. She will then help you to formulate a proposed payment plan and to file your Petition with the Court. Nikki will represent you throughout the process and, if possible, will seek to strip any additional mortgages from your property. We will be in regular contact with you as the case progresses and our firm will make sure that your questions are answered. We understand that this is an important time in your life and we will give your case the attention it deserves. Contact us online or by telephone today.
Attorney providing quality service to Las Vegas residents who are facing foreclosure
Our firm recognizes that the loss of a home can be devastating. Nikki has been practicing law since 2008 and she has always strived to provide the highest level of service in every case she handles. When filing a case to prevent foreclosure, we will take a comprehensive approach and ensure that all your debts are addressed in your matter to allow you a fresh start. We are honored to serve the Las Vegas community and we are looking forward to being of assistance.