Coronavirus Sends Phoenix Foreclosures Skyrocketing  | Chapter 13 Bankruptcy Stops a Foreclosure

Many people in Phoenix are feeling the impact of COVID 19 and bankruptcy may soon follow.  Plus, as coronavirus causes businesses to close and leaves thousands without jobs, the foreclosure rate is sure to skyrocket.  Whereas, our Phoenix bankruptcy attorneys recommend looking into a Chapter 13 bankruptcy filing as a method to save your home from a foreclosure.
The current pandemic has left many Arizonans with the inability to make regular mortgage payments.  COVID-19 stopped you regular mortgage payments?  If so, chapter 13 Bk allows you to get caught up again within the Ch 13 payment plan.  Additionally, our Phoenix lawyers understand when you have several different creditors, plus a late mortgage, it can be very hard to get caught up without a drastic debt relief effort.  Declaring Ch 13 could be the drastic measure that you need.

Chapter 13 Bankruptcy May Be Assistance for COVID-19

It is fair to say that every creditor hopes to be immediately paid. Plus, they think they should be paid no matter what, COVID-19 or not.  However, they do not want to be next in line to be paid, they all want to be first.  What is going to happen when they are not going to be paid because of the Coronavirus pandemic?  They will seek to repossess debtors’ property, they will try to foreclose on property, and they will attempt to garnish the debtor’s wages.
Additionally, the automatic stay in a chapter 13 bankruptcy filing forces your creditors to stop their collection actions and get in line.  Thus, not only can get caught up on your mortgage and stop a foreclosure, you can also get rid of your other creditors by filing bankruptcy in Phoenix.  Plus, all of these payments and creditors are serviced through a single monthly chapter 13 bankruptcy payment.  Not to mention, this payment is designed by your Phoenix bankruptcy attorney to be one that fits into your budget.
If you are feeling the financial stress created by COVID 19 or facing a foreclosure, contact our bankruptcy lawyers today and find out what options we have to assist you during this national pandemic.  We offer:  Bankruptcy By Phone, Zero Down Bankruptcy Filings, FREE Same Day Consults, File Now, Pay Later Options, and the experience of thousands of successfully filed Arizona bankruptcies.  Call us today at (480) 263-1699.

Will the COVID-19 Pandemic Impact the Automatic Stay of my Bankruptcy?

No. The COVID-19 delay will not impact the Automatic Stay on your bankruptcy. With few exceptions, the Automatic Stay remains in place throughout the lifetime of your bankruptcy unless your case gets dismissed.  For further clarification, contact our Phoenix bankruptcy attorney for additional information.
What is the purpose of an Automatic Stay in bankruptcy?
As soon as someone files for protection by declaring bankruptcy; the Automatic Stay goes into play.  This protects a debtor and their property from creditors.  The automatic stay also stops all collection actions immediately.  Designed to give the debtor breathing room to figure out a repayment plan or debt relief, the automatic stay is one of bankruptcies’ most powerful tools.

With Coronavirus, Do I have to pay my Chapter 13 bankruptcy payment on time? 

YES YOU DO!  Even though many other facets of society are giving you a pass on bills and obligations, as of right now, 3/26/2020 bankruptcy trustees for the most part are keeping on schedule with Chapter 13 plan payments.  Debtors should abide by their various deadlines and submit their required paperwork on time if possible.
Our Phoenix bankruptcy attorneys believe that you should always keep close track of your deadlines and payment due dates within your chapter 13 case.  Plus, chapter 7 and chapter 13 deadlines for trustee requested documents should also be closely followed.  Keep in mind, failure to provide the proper documentation or requested items from the trustee can lead to a dismissal of your Phoenix chapter 13 case.
If you have additional questions regarding your Chapter 13 case and the impact that COVID-19 may have on you or your Chapter 13 bankruptcy, your 341 hearing, your bankruptcy discharge, and your life after bankruptcy.  Our phoenix bankruptcy lawyers are here to assist you in your time of need.  Give us a call today (480) 263-1699.

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