Bakersfield, CA Foreclosure Help

The overhaul of the bankruptcy code back in October of 2005 left many people in Bakersfield, CA who were struggling with their bills with the belief that credit card debt could not be discharged through a bankruptcy filing. While it is true that the overhaul has made it more difficult to have debts discharged, the fact is that this type of debt and many others are still dischargeable through a chapter 7 bankruptcy filing.   

Also dischargeable through a chapter 7 filing are tax debts and second mortgages, under certain circumstances. The discharge of tax debt can be a complicated process requiring analysis of tax transcripts and the like, but with professional guidance can be discharged or greatly reduced in either a chapter 7 or 13 filing.

With the drop in real estate prices in Bakersfield, CA, second mortgages can now be discharged through a bankruptcy filing should the value of the underlying property fall below the balance owed on the first mortgage. At that point, the second mortgage is considered to be an unsecured debt, much like an unsecured credit balance, and can be discharged through a bankruptcy. This kind of debt elimination can be the difference between being able to keep a home and losing it to foreclosure.

 Chapter 7 and Chapter 13 bankruptcy filings provide many other benefits as well. A Chapter 7 bankruptcy is typically a fast process which can be concluded within several months. Filers can see most if not all of their debt eliminated in the process. Additional benefits of a Chapter 7 filing are:

    * A Chapter 7 filing is usually much less expensive than a Chapter 13, primarily due to the shorter time to process the bankruptcy.

    * A Chapter 7 filing dismisses debt as opposed to putting the filer on a payment plan as in a Chapter 13 filing.

    * Secured debt can typically be wiped away ninety days after the return of the underlying collateral.

    * Unsecured debt such as credit cards and unsecured mortgages can be wiped away in as little as ninety days.

    * A filing can stop wage garnishments, repossessions, and the foreclosure process.

Whether a filer from Bakersfield, CA goes through Chapter 13 or Chapter 7 is determined by a means test where those earning above the median income are directed toward a Chapter 13 filing. These can take longer and be more expensive than a Chapter 7 filing but still carry many benefits for those who cannot pay their debts in full.

    * A Chapter 13 filing can stop a foreclosure process.

    * A filing can stop wage garnishments and repossessions.

    * A filing can eliminate interest and penalties levied by the IRS.

    * Restructuring of automobile loans can be done with a Chapter 13 filing.

    * On home loans, interest, principle and arrearages can be restructured.

    * Subordinated home loans can be eliminated when the value of the home drops to a level below the balance of the first mortgage.  

For many people, a bankruptcy filing provides a chance to start over and get back on their feet again. The Feldman Law Center is dedicated to helping the residents of Bakersfield, CA and its surrounding areas to find the best solutions for their specific situations. For more information, call The Feldman Law Center today at (800) 527 8497.