Marin County bankruptcy attorney explains how lien stripping in Chapter 13 works in California, and why it may be a good reason to consider Chapter 13 instead of Chapter 7.
If you are going to use a bankruptcy petition preparer, make sure that that you avoid unrealistic expectations and realize that they are not lawyers. The best way to educate yourself is to make sure they give you–and that you read–the Notice to Debtors About Bankruptcy Petition Preparers, and that you have reviewed the Northern California Bankruptcy Petition Preparer Guidelines.
As this dog-tired economy continues to drag on, with no relief in sight and no bounce-back in home prices appearing anywhere on the horizon, the single question I am asked most frequently is “Should I walk away from my mortgage, and if I choose to do that, what are my options?” Usually it comes in [...]
If you file Chapter 7, and either are current or get current with your mortgage(s), then you can most likely keep your home. If however, you are in arrears, and are not able to bring the loan current, then–unless you can complete a mortgage modification that allows you to stay–you are likely lose the home. On the other hand, if you file Chapter 13, and are able to successfully get a payment plan approved by the Court, then you may be able to stay. This is because in a Chapter 13, you can take the outstanding mortgage arrearages, and pay them back through the Chapter 13 plan over the 3 to 5 year commitment.
California has some of the most generous, pro borrower anti-mortgage loan deficiency statutes in the country. Here in one place they are listed and briefly described. This post is not a substitute for specific legal advice, however, and if you think you may have a deficiency exposure, you should see a qualified real estate lawyer to help you plan a course of action.
Misinformation about cancellation of debt and tax implications seems to be piling up. In particular, folks seem most confused by the receipt of Form 1099-A from lenders who have taken property back in foreclosure. But it’s not the 1099-A that causes the problem; it’s the 1099-C.
I frequently hear from clients and prospective clients telling me that they have “rearranged” their financial affairs through the use of so-called “quitclaim deeds” or other contractual mechanisms by which title to property–and by extension–liability for a mortgage, is transferred. The most common appearance of this tends to be in the marital dissolution and property [...]
This is the “official version” of what the United States government wants prospective debtors to know about Chapter 13. It is NOT the “inside baseball” version; just the government’s party line.
California Homestead Exemptions Increased by $25k as of January 1, 2010
A deficiency is what is left on the debt after a lender forecloses. Simple example: House worth $250k, debt of $450k, there’s going to be a deficiency of $200k. It can be principal and interest on the specific loan that was actually foreclosed, or it can be a completely different loan, like a second or third deed of trust. California is highly unusual and is very pro debtor in this regard. More often then not, deficiencies are barred due to the generous anti-deficiency rules.
