After detailed analysis of your situation, filing a chapter 13 to re-organize and consolidate your debts may be the best option. This is especially true when your Second Mortgage can be eliminated and allow you to stop house foreclosure. In California, filing for Chapter 13 debt consolidation is a powerful and legal way to stop the foreclosure process immediately.

Additionally, there are certain debts that may be dischargeable in Chapter 13 that cannot be eliminated under Chapter 7. For example, Chapter 13 will stop all interest and penalties being levied by the IRS, and might even be able to eliminate some IRS debts.

The Chapter 13 plan will be designed to keep what you want and pay as much as you can afford. After a period of 36-60 months, any unsecured debts included in the plan that you have not been able to pay off are completely eliminated.

Sometime our clients reach us too late in the foreclosure process and we file a Chapter 13 in order to stop house foreclosure and buy time to exercise any other viable options, including Loan Modification.

Timing is everything during a financial crisis. The more time we have the better we can prepare and more options are available.