Legal Question in Bankruptcy in California

As with any legal proceeding, in bankruptcy there is due process and an appellate process. However, while Chapter 7 temporarily stays foreclosure proceedings, it does not accomplish "home-saving" in the manner that Chapter 13 does. In Chapter 13, one can catch up on arrearages in order to reinstate mortgages and in certain cases, remove second mortgages.

Sometimes, it's prudent to acknowledge that a house must not necessarily be one's final home, especially if its equity has dropped and it essentially belongs to the bank, not to you.

I hope this is helpful.

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Was your chapter 13 dismissed or converted? If so, by whom? Did the creditor secured by your house get relief from stay? If you ended up in chapter 7, why did the court deny your petition? Are you in foreclosure? Have you tried to make an arrangement with the lender? Is your home worth more than what you owe against it? Have you listed the property for sale? Can you increase your income? The bottom line is that you must continue to make current monthly payments and cure acreages or modify your agreement with the lender. Chapter 13 works only if you have sufficient resources to fund the plan. Chapter 7 will only stay creditor collection activity until discharge or relief from stay. It will however, discharge unsecured debt, which might increase your cash flow and allow you to make your house payments.