Bankruptcy and Chapter 13

One of the questions frequently asked by our clients is when do we think their home will regain their value and equity? I recently read an article in Money Magazine in the May 2010 issue that discussed this very point. It stated that the average homeowner in California is 35% underwater and they estimate that it will take till 2028 to recover. Our clients are often trying to make the difficult decision on if they should keep their home or walk away. I usually advise them to consider how long they plan on staying in their home, do they like where they live, and to think about their long term goals. If you are only planning on staying in your home a short time there is not a very good chance of breaking even, the longer you stay the better chance you have of breaking even or eventually getting back some of your equity. If you goal is long term it is also a good idea to consider doing a chapter 13 bankruptcy if you have a second mortgage/heloc/line of credit on your home, as they can be stripped through bankruptcy. By stripping a second mortgage you can make it so that you are not as upside down on your home and put yourself in a spot where you can recover your equity quicker. About the Law Offices of Cortright, Valentine & Associates The Law Offices of Cortright, Valentine & Associates is a general practice law firm conveniently located in Riverside County with offices in Menifee and Palm Springs. They are your local Bankruptcy Lawyers, providing one-on-one personal assistance with all of your legal needs. They are not a referral service or a distant law firm; located right in your neighborhood, they are real people who both live and work in Riverside County. Here’s what you can count on with the Law Offices of Cortright, Valentine & Associates as your Banruptcy Attorney, they take the worry and fear out of filing because they are with you through every step of the process. You can be confident they will do whatever is needed to make your bankruptcy successful. For more information, visit http://www.cortrightandvalentine.com or for a free consultation call (951) 200-7505. To learn about our new video series please visit us on http://www.youtube.com/LawOfficeofCVA. “We look forward to meeting with you!” Law Offices of Cortright, Valentine & Associates 27186 Newport Road, Suite 1 Menifee, CA 92584 (951) 200-7505 consultations@cortrightandvalentine.com www.cortrightandvalentine.com www.thebankruptcy-lawyer.com

Read answers relating to Bankruptcy that Attorney Kevin Cortright has answered!

AnswersPowered by Avvo.com

---

Q: Going into Chapter 7 with a pending workers comp award in southern California...Am I at risk of losing my Workers Comp money?: I have been waiting a long time and settlement appears to be coming. I know that workers comp payments appear to be exempt under either ca system of exemption...but what about a large lump sum? It could be $40-80k. Please help.

Posted 4 days ago in Bankruptcy

A: Kevin's answer: Workers Compensation settlements can generally be exempted since they are meant to cover some sort of permanent disability, thus compensating you for future loss of wages do to the disability. There are specific exemptions which your attorney will used to protect any settlement that you receive. But as always an attorney will need to look at your complete financial situation to determine which exemptions can be used for your specific case. Take the time to review my website as there is some helpful information there that will assist you in analyzing your situation. Disclaimer: Attorney's response is not intended as legal advice and is intended for informational purposes only. Inquirer should seek the advice of a duly licensed attorney within that jurisdiction. www.cortrightandvalentine.com

Posted by a user, 13 minutes ago.

---

Q: im consedring letting my car go back to the bank how long does it take before they start to garnish your wages: i cannot afford to pay for my car any longer im falling further into debt and do not qualify for chapter 7 bankruphtcy

Posted 3 days ago in Debt Collection

A: Kevin's answer: It seems that if you can't pay your car payment then your financial situation should be bad enough to qualify for bankruptcy. While you may not qualify for some reason for a chapter 7 there is also the chapter 13 option. Sometimes when you think there are no options you can be wrong, I would highly recommend that you consult with an attorney so all of your financial situation can be evaluated. Very rarely do I meet with a client that we can not establish a plan that can help their situation. Take the time to review my website as there is some helpful information there that will assist you in analyzing your situation. Disclaimer: Attorney's response is not intended as legal advice and is intended for informational purposes only. Inquirer should seek the advice of a duly licensed attorney within that jurisdiction. cortrightandvalentine.com

Posted by a user, 20 minutes ago.

---

Q: Is it possible to clear a line of credit and modify a loan when you file bankruptcy?: we have a home loan with bank of america 703,000 and line of credit also with bank of america about 200,000 .we stop pay both of them about a year ago because we had a hard time (we work in real estate and constraction) We did try to modify the loans ,but it was with a scam company we did not recive notice of sale yet ,but the lawyer that we working with now ask us to do bankruptcy and he will modify the first loan and clear the line of credit he said it will work for sure .what do you think about it .please give us your advice . p.s we can pay the new amount that he gave us now,he said that it wil be around 2.5%-3% for the loan after it. Thank You and have a great weekend.

Posted about 9 hours ago in Bankruptcy

A: Kevin's answer: A second mortgage can be eliminated or stripped in a chapter 13 bankruptcy. A lawyer would need to review your complete financial situation to see if you qualify as there are limitations. Click the link below and you can read some comprehensive information on chapter 13 bankruptcy that will give you a better idea of what to expect in a chapter 13 bankruptcy. Disclaimer: Attorney's response is not intended as legal advice and is intended for informational purposes only. Inquirer should seek the advice of a duly licensed attorney within that jurisdiction.

Posted by a user, about 1 hour ago.

---

See all of Kevin's answers

---

Avvo.comView Kevin's profile

---