If you are facing foreclosure and cannot work out a deal or other alternative with the lender, bankruptcy may help.

If you get behind on your mortgage payments, a lender may take steps to foreclose — that is, enforce the terms of the loan by selling the house at a public auction and taking payment of your loan out of the auction.

This won’t happen overnight. The foreclosure process typically starts after you fall behind on your payments for at least two months, and often three or four. That gives you time to try some alternate measures, such as loan modification (see loan modification), a short sale, or a deed in lieu of foreclosure. But if you’ve already tried and failed with these measures, now is a good time to consider bankruptcy as a possibility for avoiding or stalling foreclosure.

How Chapter 13 Bankruptcy Can Help

Many people will do whatever they can to stay in their home for the indefinite future. If that describes you, and you’re behind on your mortgage payments with no feasible way to get current, the only way to keep your home is to file a Chapter 13 bankruptcy (See Chapter 13).

How Chapter 7 Bankruptcy Can Help

(See Chapter 7).

Cancelling debt: Chapter 7 bankruptcy will cancel all the debt that is secured by your home, including the mortgage, as well as any second mortgages and home equity loans.

Cancelling tax liability for certain property loans: Thanks to a new law, you no longer face tax liability for losses your mortgage or home-improvement lender incurs as a result of your default, whether you file for bankruptcy or not.

The Law Offices of Alex Leon will explain all available options so you can make the best informed decision for you and your family.

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Bankruptcy Testimonials

"We were in a position where our best option was to file for bankruptcy. We were very thankful to have the professional and personable guidance of the Law Offices of Alex Leon during that stressful time. Being able to work directly with Alex throughout the entire process made all of the difference. "

Lane and Jennifer B.

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