Legal Question in Bankruptcy in California

I am looking into filing bankruptcy in California. I am also filing for disability with my the company I have worked with for about 13 years. My home is my only assets and one of the only debts to speak house has been under loan modification for 24 months and the bank requested three payments in order to continue reviewing the modification. I was asked to pay about $6500 per month. Made the first but am at the end of my rope for the next. The payment is due March 6th, 2011. Will bankruptcy help me stay in my home? The mortgage was taken out in 2005. Interest only was paid for three years at $5000 a month. The company I work for had a break in two years ago and wasn't able to pay my salary. This made me eligible for the modification. The bank has not come up with a resonable payment on the house (which is upside down in today's market). Will bankruptcy help...chapter 7, 11 or 13? How do I go about this? Thank you for your advice.

Asked on 2/28/11, 5:47 pm

1 Answer from Attorneys

Catherine Eranthe Eranthe Law Firm

You've raised a number of issues. Go see a local bankruptcy attorney immediately! Most will provide a no cost consultation and can give you some much needed information.

Bottom line is if you can't afford to make the payments on your home, filing bankruptcy won't change this. It might buy you some time or impact your mortgage. You don't say if there is only one loan or several on your home.

If you file bankruptcy it would be a chapter 7 or 13. In a chapter 13 it might be possible to work something out to save your home and it might not. Chapter 11 is for businesses.

Go see an attorney with all your information and get specific information.

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Answered on 2/28/11, 11:34 pm

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