San Fernando Valley Bankruptcy Firm near Los Angeles Saves Debtor's House from Foreclosure While Preserving Over $140,000 in Equity in the Process.

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The Law Offices of Michael H. Raichelson, with offices located near Los Angeles and Ventura, was able to save the debtor's home from foreclosure while cutting her interest rate in half and stretching out repayment terms over five years of a previously matured short term balloon payment loan.

Michael H. Raichelson

After 10 months of hearings, we were able to save the debtor's home and over $100,000 in equity while stretching her balloon payment out over five years.

Attorney Michael H. Raichelson, attorney with offices near Los Angeles and Ventura, was able to save the debtor's home from foreclosure while preserving $140,000 worth of equity for the debtor. According to Ventura County public records, a foreclosure sale was schedule to occur on January 12, 2011 on the debtor's home, which would have wiped out over $140,000 of equity the debtor acquired in her property located in Thousand Oaks, California. On January 10, 2011, the Law Offices of Michael H. Raichelson filed an emergency Chapter 13 bankruptcy petition in the Central District of California Bankruptcy Court. The case number is 1:11-bk-10355. This Chapter 13 bankruptcy filing stopped the foreclosure sale and provided the debtor with some much needed breathing room.

According to the Bankruptcy Court's records in case number 1:11-bk-10355, a short term hard money loan had matured and the debtor was required to pay in excess of $97,000 or lose her home to foreclosure. Court records indicate that the creditor filed an objection to the debtor's Chapter 13 Plan, as well as a Motion to lift the bankruptcy stay which, if successful, would have allowed the creditor to conclude the foreclosure sale. After receiving the debtor's opposition brief and hearing the argument of the debtor's counsel, Michael H. Raichelson, the court denied the motion, thus saving the debtor's house. The creditor subsequently filed two more objections to confirmation of the debtor's Chapter 13 Plan. According to the Bankruptcy Court records, the Court set an evidentiary hearing as to the appropriate interest rate. Michael H. Raichelson confirmed that the creditor finally agreed to lower the interest rate by over six percentage points rather than face a stiff opposition by debtor's counsel. Also, the creditor acknowledged that the Court was going to stretch out repayment of the balloon payment over five years and as a result, entered into a stipulation allowing for this treatment in the debtor's Chapter 13 plan. Michael H. Raichelson indicated that this is a clear win for this debtor. Court records confirm that the debtor's Chapter 13 plan was confirmed in December 2010 after 10 months of hearings.

The Law Offices of Michael H. Raichelson already makes quality bankruptcy information, news, articles, and resources available to the public through its Web site at The site contains a complete list of on line bankruptcy resources, explanations regarding California bankruptcy exemptions, information on asset protection, and methods for eliminating your second mortgage through bankruptcy.

Attorney Michael H. Raichelson, owner and operator of the Law Offices of Michael H. Raichelson, is a former senior associate with a national law firm. He has counseled thousands of individuals and businesses regarding their debt problems and solutions, and, he has been selected as a Super Lawyer by Thomson Reuters - as republished in Los Angeles Magazine - confirming that he is in the top five percent of all attorneys in the Los Angeles’ area. He is dedicated to providing solid representation to his clients during the bankruptcy process and helping them to rebuild their financial life after bankruptcy.

For more information regarding Chapter 7, Chapter 11, and Chapter 13 bankruptcies, visit the Law Offices of Michael H. Raichelson.


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