Asian Journal- The Filipino-American Community Newspaper

MANY homeowners faced with foreclosure are often encouraged by attorneys to file a Chapter 13 bankruptcy to save their home. This is because bankruptcy has the extremely powerful weapon of the automatic stay that stops all creditors, including the banks, from proceeding against the debtor outside of the bankruptcy setting. The automatic stay can even stop a foreclosure sale at the last minute.

However, in some situations may not be necessary to save the family home. It is our firm’s philosophy to explore every available option to save the home before considering filing a bankruptcy. Only if it is absolutely necessary to prevent a foreclosure and it is in the best interest of the client do we recommend bankruptcy. Only when absolutely necessary is bankruptcy considered, such as dealing with a few lenders unwilling or unable to negotiate new mortgage terms, payments or rates, or being unable to qualify for the various mortgage programs.

The first step any attorney’s analysis is to examine the homeowner’s entire economic status. In broad categories this means the amount of the mortgage, whether there is a second mortgage, other debts, such as credit cards and auto loans, and of course, income. Always in this analysis is a pending trustee sale, and the level of bank cooperation in postponing these sales. While we actually have one case with nine (9) postponed sales, bank employees sometimes just find it easier to let a home go to foreclosure

If a homeowner has few or little other debts to pay besides the home mortgage, and only a few months in mortgage payment arrearages, bankruptcy might not be as useful, particularly if there is a steady revenue stream to the household and enough disposable income to cover back payments. However, if a family’s debt load increases, the lender is not cooperative, there are too many missed payments, filing a bankruptcy can start to make more sense, as it can solve more than your personal mortgage crisis. Again, the bank’s attitude is an issue as well.

However, even if a bankruptcy might be the best legal path for a homeowner especially if there is a mortgage payment reduction plan prior to filing a bankruptcy petition.

Bankruptcy can be a viable option and is an effective legal tool in the battle to keep your home. It is not always the best solution. A good lawyer will always explore all other options and legal strategies before making a determination that bankruptcy is the way to go. A good lawyer also looks at the client’s whole situation and considers the ramifications of bankruptcy. A good lawyer is not afraid to try to every legal method to keep the client his or her home. A good lawyer will also take the time to work with the client to explain all of the options and yes even talk about bankruptcy.

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Bander Law Firm, LLP has been providing immigration services for over 15 years and has multilingual staff. Feel free to call Bander Law Firm, LLP at (213) 873-4333 to schedule your consultation regarding your legal concerns. Bander Law Firm provides a full range of legal services in the fields of Immigration, Mortgage Litigation, Personal Injury, Bankruptcy, Criminal and Removal Defense, Civil and Business Litigation, Wage and Hour Litigation and Class Action lawsuits.

Bander Law Firm, LLP Downtown office address: 1055 W. 7th Street, Suite 1950, Los Angeles, CA, 90017. Tel: (213) 873–4333 Fax: (213) 873–4334. San Gabriel Office address: 1045 E. Valley Blvd., #A215, San Gabriel, CA 91776. Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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( Published October 10, 2009 in Asian Journal Los Angeles p. C4 )