Many California homeowners have been hit hard with toxic subprime and Alt A home loans over the past few years, and it’s going to get worse before it gets better for most. With unemployment on the rise and pay cuts across most sectors many California home owners have sought loan modifications with no avail. With the increasing amount of short sales and foreclosures throughout California; “many home owners are seeking the advice of a bankruptcy attorney when declined for a loan modification” says attorney James D. Zhou with the Law Offices of Zhou & Chini. Zhou has been a bankruptcy attorney for over 10 years and states he has never seen such a perfect storm allowing home owners to strip 2^nd and 3^rd mortgage liens now that they are unsecured due to negative equity. “We see so many home owners is bad situations, eliminating 2^nd mortgages along with their credit card debt get’s them a fresh start and  potential equity in a few years” say’s attorney Ron Chini, partner at Zhou & Chini.

If you have been declined for a loan modification or even approved for one and have a underwater 2^nd or 3^rd lien it can be eliminated just like credit card debt. A chapter 13 with a motion to avoid the lien will strip the lien and eliminate ones personal liability for the debt. While filing a chapter 7 will only eliminate the liability but the lien will remain on the property. Many bankruptcy attorneys don’t even mess with a chapter 13 because they are complicated and would rather refer out a chapter 13 bankruptcy and focus on chapter 7 bankruptcies. Ideally someone declined for a loan modification should consult a bankruptcy lawyer that handles both chapter 7 and chapter 13 bankruptcy. If you were lucky enough to get a loan modification on a 1^st TD and have a 2^nd mortgage that’s upside down then filing chapter 13 to eliminate it may be a good choice or filing chapter 7 to eliminate all your other debt might make sense as well.

Bankruptcy is an option to help stop foreclosure, but if you are in arrears then you need to bring them current to file chapter 7 or you must file chapter 13 and repay the arrears in the chapter 13 plan. A bankruptcy attorney can tell you if you pass the means test and qualify for a chapter 7 if you get a loan modification. Bankruptcy with a loan modification is a powerful tool, and bankruptcy chapter 13 with a failed loan modification may save your home from foreclosure.

Making mistakes when it comes to filing bankruptcy chapter 7 or chapter 13 can be very costly so carefully select a bankruptcy attorney. To get bankruptcy help or locate a bankruptcy attorney in California visit www.BankruptcyAttorneyinCalifornia.com.

The Bankruptcy Attorneys at the Law Offices of Zhou & Chini offer free bankruptcy information in an effort to help consumers who need debt relief or help avoiding foreclosure. If you have additional bankruptcy questions or need information about filing bankruptcy in California please contact our cooperate office at (888) 901.3440 or visit www.BankruptcyAttorneyinCalifornia.com. Our Bankruptcy Attorneys will be happy to offer you a FREE consultation over the phone or at one of our convenient locations. We are California bankruptcy attorneys with full knowledge of Federal and California State Bankruptcy Exemptions. Our Bankruptcy Attorneys can help protect your assets under Federal Bankruptcy Laws and can assist you with all aspects of your case. We are happy to answer questions about filing a chapter 7, chapter 13, chapter 12, chapter 20, or chapter 11 business bankruptcies. We can help with stopping /avoiding foreclosure or wage garnishments, and assist you in avoiding judgments, liens or levies. We can also help with mortgage cram downs, lien stripping, eliminating a 2nd mortgage and discharging debt. Please feel free to complete our free bankruptcy evaluation form or contact one of our office locations today. We are here to help and can quickly determine if you are a qualified candidate for bankruptcy.