 Los Angeles, CA - Many homeowners in California are facing foreclosure, in spite of an improving economy. Filing bankruptcy can be the best option to avoid a bank foreclosure. Hiring an experienced foreclosure attorney is usually the best way to save a home and improve financial distress. A skilled foreclosure lawyer, one who is dedicated to stopping foreclosure, will look at the big picture and advise whether it makes sense for a borrower to file bankruptcy or to file a lawsuit. There are benefits for both bankruptcy and litigation beyond stopping foreclosure that are best explained by a lawyer. According to Lauren Rode, a senior Los Angeles bankruptcy attorney of Consumer Action Law Group, “Filing bankruptcy has numerous benefits in addition to stopping foreclosure, eliminating medical and credit card debts, stripping a second mortgage, stopping auto repossessions, stopping wage garnishment, stopping collection calls, and improving credit scores.” She continues, “consumers can immediately stop foreclosure by filing bankruptcy, but it’s not always advisable.” There are two forms of bankruptcy which is totally different consequences and outcomes for anyone who want to choose the bankruptcy route. The two common bankruptcy chapters used to stop a foreclosure sale are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 is a forgiveness of the qualified debts and a liquidation of resources while Chapter 13 is a debt consolidation plan, the property is protected for the duration of the of the repayment plan. Chapter 13 bankruptcy is based upon a repayment plan which allows consumers to repay secured debt such as mortgage payments and car payments that are delinquent. Chapter 13 bankruptcy also allows consumers to wipe out credit cards, medical debt, or any loans that are not secured by assets. Homeowners can also use chapter 13 to eliminate unsecured home loans or second mortgages, which is commonly referred to as lien strip. However, consumers must be able to make the monthly mortgage payment as well as all other monthly expenses, plus a plan payment, to catch on past due debt obligations. In order to file chapter 13 the court requires proof of income to see if the person filing has sufficient income to afford the bankruptcy plan. Bankruptcy is a complex legal process, so it’s best to understand benefits and consequences of bankruptcy before making a choice to file. When selecting a bankruptcy attorney Los Angeles has many experienced lawyers, but it is important to select a lawyer who is very familiar with foreclosure laws in addition to bankruptcy laws. Residents in the state of California can get free bankruptcy advice from Consumer Action Law Group attorneys. The bankruptcy attorneys at the firm are dedicated to stopping foreclosure by filing bankruptcies and lawsuits. Their attorneys evaluate each case in detail, and provide individuals with the options that best fit their situation. To contact Consumer Action Law Group call (818) 254-8413 or visit their website at http://ConsumerActionLawGroup.com About Consumer Law Action Group Consumer Law Action Group is a law firm with offices in Los Angeles, dealing with consumer issues such as wrongful foreclosure, auto dealer fraud, and employer violations. The attorneys within Consumer Law Action Group focus on lender litigation, bankruptcy, and lawsuits against car dealers, as well as claims against employers who violate labor laws. For Media Inquiries: Contact Person: Lauren Rode, Esq. Telephone: (818) 254-8413 Email: Lauren@consumeractionlawgroup.com Website: http://consumeractionlawgroup.com
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