This document provides information about bankruptcy and foreclosure options for homeowners facing financial hardship. It explains that filing for bankruptcy before a foreclosure auction can help save one's home. Chapter 13 bankruptcy allows homeowners with regular income to reorganize debts and catch up on late mortgage payments over 3-5 years. Chapter 7 bankruptcy eliminates unsecured debt but requires surrendering one's home. It can prevent tax and legal issues from foreclosure deficiencies. The document urges consulting a bankruptcy attorney for a free consultation to evaluate the best options.

1. Foreclosure and Bankruptcy: Can you keep your home? Lars Peterson - Attorney at Law Law Office of Lars Peterson, LLLC 1188 Bishop Street, Suite 3107 Honolulu, HI 96813 P: (808) 469-4300 F: (808) 237-5849 [email_address]

3. Unexpected medical bills

5. Are your credit card debts increasing?

9. Your realtor

10. Your mortgage broker

11. Your attorney

13. There are non-bankruptcy alternatives (debt settlement or negotiation) with which a bankruptcy attorney can help

14. You need to know your options and evaluate your situation carefully

16. Hiring an attorney when the financial problems are foreseeable or have just begun is usually much cheaper than waiting until the foreclosure is taking place

18. A third party can be objective about an issue which can be very emotional and confusing

20. Chapter 7 usually does not allow you to keep your home (you give up your home); but it can help you prevent negative consequences after foreclosure (deficiency judgments, taxes)

22. You can file bankruptcy until a court confirms the foreclosure (after the auction)

24. Sometimes, even if you get a loan modification, you still might have to consider bankruptcy

25. It can avoid other negative consequences (taxes, deficiency judgments)

27. Chapter 11

28. Chapter 7

31. If your decreased household income is only temporary; and

32. You can catch up on the arrears during a 3-5 year period

36. You pay your mortgage lender directly (regular monthly mortgage payment)

37. You make 1 monthly payment to the Chapter 13 bankruptcy trustee for all your other debts

39. 3-year plan: $330/month (for mortgage only)

40. 5-year plan: $200/month (for mortgage only)

52. Not useful if you have significant equity in property

53. Not useful if you have significant other debts

54. Lender must waive any deficiency claim

56. Call me for a free consultation – I will tell you if you should consider bankruptcy

57. Although nobody likes to discuss financial problems, it is important to take charge while you still can

58. Everything you tell your attorney is confidential (attorney-client privilege)