Home Mortgages and Secured Debts

California Bankruptcy Attorney

Mortgage Debt & Other Secured Debt

In bankruptcy, secured debt is treated differently than unsecured debt. In general, where property of the debtor, such as a house, a motor vehicle, or other valuable property, secures a claim held by a creditor, that creditor has the right to enforce its claim against the property. Contact bankruptcy lawyer Gary Greule at the Law Office of Gary D. Greule in Citrus Heights, California, for specific advice about your ability to stop foreclosure and protect your other secured property under the bankruptcy laws.

Mortgage debt is probably our clients' biggest concern, especially if the mortgage is in default and the bank is threatening a home foreclosure. In cases where the debtor has substantial equity in their home, the mortgagee will normally not be granted relief from the automatic stay to foreclose the mortgage provided there is a feasible chapter 13 plan filed and payment are current in that plan.

With those considerations in mind, both debtors and creditors usually find it advisable to resume payments on secured loans and mortgages so that the debtor can keep his or her home, car, truck, or other secured property. Car loan and mortgage loan arrearages can be paid in a Chapter 13 plan or outside of bankruptcy in a Chapter 7 bankruptcy case.

The toughest cases arise when the debtor has little equity in the collateral, whether it's real estate, a car or truck, or any other asset. In those situations, bankruptcy attorney Gary Greule will work with the creditor even before the bankruptcy petition is filed. The objective is to find a way for you to keep your home, car, truck, van, or other property while satisfying the creditor's concerns for repayment. That way, you won't have to worry about losing your property through repossession, foreclosure, or other means of liquidation.

We also work with creditors holding security interests (secured creditors) in equipment, inventory, or accounts receivable in business Chapter 13 cases. For further information about our ability to handle your mortgage lender, banker, or auto loan company, contact the Law Office of Gary D. Greule in Citrus Heights, California.

We are a debt relief agency. We help people file for relief under the United States Bankruptcy Code.