Salt Lake City Stop Foreclosure Attorney

Stop foreclosure with Salcido Law Firm
You can stop foreclosure through the filing of a Utah bankruptcy.

Owning a home has become part of the American Dream, but if we have learned anything about the “irrational exuberance” of the 2000s, the housing market is not always a bastion of sound investment. There are ways, however, to stop foreclosure.

A lot of people owe more on their home than it is worth and that has resulted in a lot of people becoming insolvent.  If you fall into that category you could benefit from the services of Salcido Law Firm’s bankruptcy attorneys.

When you file either for Chapter 7 and a Chapter 13 bankruptcy protection your creditors are prohibited by the automatic stay from going any further in attempting to collect from you.

Which Bankruptcy Chapter is Right for Me?

Whether you file for Chapter 13 or Chapter 7 bankruptcy will depend on the amount of equity you have in your home, how much money you make, whether you can continue to make the house payments after bankruptcy, and other factors.

If you qualify for Chapter 7 protection and your home equity is an amount falling under your exempt property $40,000 (married) of equity in the home ($20,000 if single) you can keep the house.  But…even though you are no longer liable to pay the mortgage once it is discharged, the bank still has a lien on the property and can still foreclose on the property if you do not make your mortgage payments.

If you have more than the minimum of equity in the home you will not be able to keep your home in a Chapter 7 bankruptcy, but if you fall within the parameters of a Chapter 13 bankruptcy you will be able to consolidate your debt, form a payment plan, and pay back what you owe on your house at a lower interest rate or with no interest for three to five years, and keep your house.

Get Rid of Your Second Mortgage!

Another reason why you may want to consider a Chapter 13 is the ability to get rid of your second and even third mortgages.  This can take place in situations where the home is worth less than the amount owing on the first mortgage.  Since, in such situations, the second and third mortgages could not recover anything if the house were sold anyway, the court can strip away those liens.

Generally speaking, a Chapter 13 bankruptcy is preferred over Chapter 7 if you want to keep your home.

Give Us a Call for a Free Consultation

At Salcido Law Firm we can help you keep your house and stop foreclosure.  Schedule a free consultation today by calling (toll free 888.337.3235 or local 801.413.1753) or emailing to find out how.