When debts begin to pile up or you have lost your job, it can be very easy to fall behind in your mortgage payments. If you miss enough payments, your lender may initiate the foreclosure process on your home to recover payment against your debt.
That does not mean, however, that you are simply expected to throw your hands up and hand over the home that you worked so hard for. By filing for a Chapter 7 or Chapter 13 bankruptcy, you can temporarily hold off your lenders. The automatic stay, one of the most important parts of an Arizona bankruptcy, is a protection that prevents lenders and creditors from pursuing collection of your debt for a certain amount of time.
If you are employed and make a livable wage, filing for an Arizona Chapter 13 bankruptcy will likely be your best option. A Chapter 13 bankruptcy allows you to make a three- to five-year repayment plan on your debt—including your current and unpaid mortgage payments—allowing you to remain in your home as long as you stick with your payment plan and schedule.
If you do not qualify for a Chapter 13 bankruptcy, filing for a Chapter 7 bankruptcy may still be a viable option. While the automatic stay is temporary, it does buy you some time. Also, if you are current on your mortgage payments but have other debts, discharging the other debts in bankruptcy could allow you to continue paying your mortgage and living in your home without fear of foreclosure.
Bankruptcy is not a foolproof way to escape foreclosure, but under the right circumstances it can be a useful tool. Our Arizona bankruptcy attorneys can help ensure that you gain the maximum possible protection and benefits from your Phoenix area bankruptcy case. If you are concerned about losing your home to foreclosure, the time to act is now—call us at 602-258-1000 to speak with a lawyer today.