Losing your home can be a very traumatic experience and often times a homeowner ends up in the predicament through no fault of their own.  In this tough economy many hardworking people have found themselves either under-employed or unemployed for years.  They try to take whatever jobs they can just to get by, but often times these jobs are not enough to sustain a household.  Medical issues are another problem that cause financial hardships with families.  The combination of these problems can cause havoc even on financially responsible people and when there is no way out Bankruptcy can be a lifesaver.

one of the most powerful protections in  bankruptcy is the automatic stay.  The bankruptcy automatic stay prevents nearly all creditor and/or collection activity against the person who filed bankruptcy.  This includes providing protection from having real property sold at a foreclosure auction. Thus, if your house is scheduled to be sold at an auction, filing bankruptcy will stop the auction.  This will allow the homeowner some time to regroup and perhaps save their home.

However, it is important to have a plan on how to keep the property during and after the bankruptcy.  Bankruptcy should not be filed only to delay a foreclosure sale date.

If you are a Southern California homeowner who is being threatened with foreclosure on your home please call my office at (877) 449-8898.