For Antioch homeowners who have fallen behind on the mortgage, the most important question a bankruptcy attorney in Antioch, CA answers is whether the house can stay. Chapter 13 can spread missed payments over a three-to-five-year plan, while Chapter 7 clears unsecured debt but does not cure arrears. Which one fits depends on the numbers.
The question East County homeowners bring first
Families have long bought in Antioch, Oakley and the surrounding East County neighborhoods because the space and the price of entry made sense. When a job change, a medical problem or a run of credit card balances throws the budget off, the mortgage is often the payment that slips. A few missed months turn into a letter from the servicer, and eventually a Notice of Default is recorded with the county.
At that point, two separate problems are usually tangled together: the past-due mortgage amount, and the other debts that made it hard to keep paying. Bankruptcy treats those problems differently depending on the chapter. If a Notice of Default or sale date is already on the calendar, call (415) 754-0115 to schedule a free consultation so timing can be reviewed right away, or write to us through the contact page.
How Chapter 13 can catch up mortgage arrears
Chapter 13 is the chapter built for homeowners who want to keep the house but cannot pay the full arrears at once.
Arrears spread across the plan
The past-due amount the lender claims is paid through the plan over its three-to-five-year life. Instead of producing the whole sum in a lump, the homeowner makes one monthly plan payment to the Chapter 13 trustee, who distributes it to creditors.
Regular mortgage payments must continue
A Chapter 13 plan does not replace the mortgage. The homeowner keeps paying the ongoing monthly installment while the arrears are cured through the plan. Falling behind on those post-filing payments gives the lender grounds to ask the court to lift the automatic stay.
Second mortgages and HOA balances
Arrears on a second mortgage, a home equity line or homeowners association dues can usually be included in the plan as well. Unsecured debts such as credit cards and medical bills are paid according to what the plan can afford, and the remaining balance is generally discharged at the end.
When a second loan is completely underwater
If the home is worth less than what is owed on the first mortgage, a second mortgage may be treated as unsecured in Chapter 13. Our article on stripping a second mortgage in Chapter 13 explains how that works and when the lien is finally removed.
Where Chapter 7 fits for an Antioch homeowner
Chapter 7 is shorter and does not involve a repayment plan, so it is the right discussion for some homeowners and the wrong one for others.
Clearing unsecured debt to free up the budget
If the mortgage is current, or only slightly behind, wiping out credit cards, personal loans and medical bills can leave enough room in the household budget to keep the home affordable. In that situation, Chapter 7 may relieve the pressure without a multi-year plan.
What Chapter 7 cannot do with arrears
Chapter 7 stops a foreclosure only temporarily. The lender can ask the court for relief from the automatic stay, and there is no built-in way to repay missed payments over time. A homeowner who is well behind usually needs a separate arrangement with the servicer, such as a loan modification, or a different chapter.
Equity and the homestead exemption
California's exemption systems protect a certain amount of home equity. If equity is above the protected amount, a Chapter 7 trustee could sell the house to pay creditors. In Chapter 13, the home is kept, but the plan must generally pay unsecured creditors at least what they would have received from that nonexempt equity in a Chapter 7.
Timing against California's foreclosure calendar
Most California home loans are foreclosed through a non-judicial process, which means no court case is filed. The usual steps run in a set order:
- The servicer records a Notice of Default after the borrower falls behind.
- At least three months later, a Notice of Trustee's Sale can be recorded and posted.
- The sale cannot occur until at least 20 days after that notice.
A bankruptcy petition filed before the auction generally stops the sale through the automatic stay. Filing after the sale is complete is a very different situation. Our article on whether bankruptcy can stop foreclosure covers the limits, including restrictions for people with recent prior cases.
Choosing a bankruptcy attorney in Antioch, CA
A homeowner facing foreclosure benefits from an attorney who understands both bankruptcy and the mortgage side of the problem. The Somal Law Firm, based in Pleasanton, handles Chapter 7 and Chapter 13 cases along with foreclosure defense, loan modification and short sale negotiation, and serves clients throughout Contra Costa County. That combination matters when the real question is whether bankruptcy, a modification or a sale is the better route for a particular house.
Our overview for a bankruptcy lawyer in Contra Costa County explains how cases from this part of the county are handled.
Frequently asked questions
Can I keep my house in Chapter 13 if I'm several months behind?
It may be possible, if the plan can cure the arrears within its term and the ongoing mortgage payment can be kept up. An attorney can review the lender's figures and your budget to see whether the plan is feasible.
Does filing remove the Notice of Default?
No. The notice stays on record, but the automatic stay prevents the sale from going forward while the case is active and in compliance.
What if my lender already offered a loan modification?
A modification and bankruptcy are not always exclusive. Some homeowners pursue a modification first, and Chapter 13 can also be used alongside loss-mitigation discussions with the servicer.
Will Chapter 13 help if I also owe credit cards?
Yes. Unsecured debts are included in the plan, and whatever the plan does not pay is generally discharged when it is completed.
When the house is on the line, the details of your loan and your budget decide the path. Call (415) 754-0115 to schedule your free consultation with The Somal Law Firm, or use the contact page and we will reach out to set up a time.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.