Save Your Home — Using Bankruptcy to Stop Foreclosure and Protect Your Future
Your home is more than a piece of property. It’s where you build your life, raise your family, and feel secure. When you’re behind on your mortgage payments or facing foreclosure, the fear of losing your home can be unimaginable. But you have options, and you don’t have to go through it alone.
At Larson & Zirzow, our Las Vegas bankruptcy lawyers help individuals and families use the tools of bankruptcy law to stop foreclosure, catch up on missed payments, and protect what matters most. With smart, personalized planning, we’ll discuss ways to save your home, remove burdensome liens and judgments, and potentially secure more affordable loan terms. Whether the foreclosure process has already begun or you’just starting to fall behind on paymnets, our team is ready to help you find the right strategy and move forward with confidence.
How Bankruptcy Stops Foreclosure
One of the most powerful protections in bankruptcy is the Automatic Stay. The moment you file for bankruptcy, the Automatic Stay goes into effect and stops collection actions, including foreclosure proceedings.
This stay provides breathing room. If your mortgage lender has already scheduled a foreclosure sale, the Automatic Stay halts that sale immediately. It also prevents lenders from moving forward with new foreclosure actions or continuing existing ones, so you have time to work with your attorney to find a solution.
Chapter 13 — A Lifeline for Struggling Homeowners
Chapter 7 bankruptcy can eliminate many unsecured debts, which may free up income to help you pay your mortgage, but it doesn’t help you catch up on past-due payments if you want to keep your home or are facing foreclosure. That’s where Chapter 13 comes in.
Chapter 13 bankruptcy is designed for people with regular income who want to keep their home and need time to pay back what they owe. Through a court-approved repayment plan lasting three to five years, Chapter13 allows you to cure mortgage arrears by putting missed payments into your plan and paying them off gradually, while keeping up with the regular monthly mortgage payments as you move forward.
Many homeowners use Chapter 13 not because they’re in active foreclosure, but because they’re behind and need time to catch up. Instead of risking repeated late payments and incurring fees and charges, Chapter 13 puts you under the court’s protection with a clear, enforceable plan of reorganization.
Powerful Tools to Keep Your Home: Lien Stripping and Cram Downs
In addition to stopping foreclosure and giving you time to cure arrears, Chapter 13 offers additional legal tools that can make your mortgage and other payments more manageable. Two of the most important are lien stripping and cram downs — powerful tools that can remove or reduce certain secured debts when conditions are right.
- Lien Stripping: If your home is worth less than the balance owed on your first mortgage, you may be able to completely remove a second mortgage or home equity line of credit in Chapter 13. This is known as lien stripping, and it can also be done with judgment liens. If successful, the “stripped off” second mortgage or lien is treated as an unsecured debt, which often means you pay little or nothing on the amount and the mortgage or lien is removed when you complete your plan.
- Cram Downs: In some cases, you may be able to reduce the amount you owe on certain secured debts (like a car loan or investment property mortgage) to the market value of the car or property through a “cram down.” While cram downs are generally not allowed on primary residence mortgages under current law, they can be used to reduce principal balances of many other types of secured debts and investment property obligations. Cram downs can make your overall financial situation more manageable so you can afford the mortgage payments for your home.
These strategies are highly technical and must be done properly, and this is where our deep bankruptcy experience and expertise make the difference. We examine your property’s value, your loan balances, and other factors to find every opportunity to remove unnecessary debt from your life and keep you in your home on terms you can afford.
Loan Modifications and Refinancing During Bankruptcy
In some situations, your best option may be to modify or refinance your mortgage rather than simply repay arrears. Nevada’s Bankruptcy Court has a special Mortgage Modification Program (MMP) that allows homeowners to explore loan modification options with their lender while under the protection of Chapter 13.
Through this program, you can negotiate new terms such as a lower interest rate, extended repayment period, and even a principal reduction, while your bankruptcy case works to keep foreclosure at bay. This structured program, supervised by the court, imposes consequences if your lender fails to negotiate in good faith.
Your mortgage lender may not be able to modify your loan for a variety of reasons. Another option may be to refinance your property, paying off your existing mortgage by securing a new loan with a different lender. Depending on your circumstances, you may even qualify for a cash-out refinance, unlocking equity in your home for necessary repairs or other approved purposes. Refinances can be very technical and require court approval, and our team of experienced attorneys can help determine if it’s the right choice for you.
Combining a loan modification or a refinance with your Chapter 13 plan can be an effective way to keep your home affordable long-term and avoid future problems.
Is Bankruptcy the Right Solution for You?
Not every homeowner facing late payments or foreclosure is best served by bankruptcy, but for many, it’s the most powerful tool available to protect their home and stabilize their finances.
If you’re behind on payments but not yet in foreclosure, acting now can preserve options and prevent panic down the road. The longer you wait, the more risk you face from missed payments, accumulating penalties and fees, or aggressive lender action. By sitting down with our team early, you can understand your options, from bankruptcy to modification to other negotiated solutions, and choose the best path forward.
How Larson & Zirzow Protects Las Vegas Homeowners
Saving a home from foreclosure or serious delinquency requires careful strategy and attention to detail. This is not an area for shortcuts or generic solutions. At Larson & Zirzow, we bring decades of focused bankruptcy experience and a client-centric approach that puts your interests first.
Here’s what you can expect when you trust us with saving your home:
- Careful analysis of your mortgage, arrears, home value, and any second liens
- A realistic plan of action to stop foreclosure and cure missed payments
- Strategic use of lien stripping or cram down tools where available
- Experienced representation in the Mortgage Modification Program if a loan modification is the best solution, or in navigating a refinancing if that option is better
- Clear, open communication so you always know where your case stands
We handle every step ourselves — no handing you off to assistants or filling out generic forms. We know what’s at stake, and we take that responsibility seriously.
Act Now to Protect What Matters Most
Time is critical when it comes to saving your home. The sooner you take action, the more options you have to stop foreclosure, cure arrears, or negotiate better terms.
If you’re behind on your mortgage in Las Vegas, facing foreclosure, or worried you soon will be, talk to Larson & Zirzow today. We’ll help you understand how bankruptcy works, what protections you have, and how we can help you stay in your home for the long term.