On May, 18, 2020 Phoenix Bankruptcy Attorney and Staff writes:
When a home is experiencing serious financial problems, one of the primary concerns is usually losing the house. When homeowners fall behind on mortgage payments, they are able to have a problem perhaps getting up, and also they risk defaulting and also facing foreclosure. Lots of individuals that are checking out the potential for bankruptcy have active foreclosure cases, and also they’re searching for methods to prevent the activity by their mortgage lenders.
Thus, a typical issue is, can bankruptcy prevent a foreclosure and enable you to maintain your house? The solution to this issue is going to depend on the unique conditions of yours, but bankruptcy is a profitable mechanism to stay away from foreclosure for a lot of households.
The Automatic Stay
When you file for bankruptcy, a court order known as the automatic stay is going to go into effect. This stay halts all collection efforts of the debts of yours, which includes legal actions like as foreclosures. If you’ve an active foreclosure situation, it is going to pause immediately, and potentially up until the resolution of the bankruptcy case of yours. This will give you time period to catch up on the mortgage of yours while you don’t have the other debt obligations of yours. Sometimes, mortgage lenders are going to petition the court to raise the stay with the foreclosure, therefore you’ve to be ready for this possibility.
In case you’re behind on your mortgage because of various other debt obligations, Chapter seven bankruptcy is able to eliminate other obligations relatively quickly. This can often regain enough cash to be latest on the mortgage of yours soon enough to prevent foreclosure. An experienced debt relief lawyer can be key when trying to save your home from foreclosure.
Emergency Bankruptcy Filing in Phoenix
Additionally, there is the possibility of filing an Emergency Bankruptcy in Phoenix. An emergency bankruptcy filing is when our Phoenix debt relief team files your bankruptcy quickly to stop things like a foreclosure or sheriff’s auction. We do this to better preserve your assets. Initially, in most emergency filings, our debt relief lawyer will file a “skeleton petition“. This type of filing only requires a few pieces of information and can be done in short order. Later, we will process and submit the rest of your Chapter 7 or Chapter 13 bankruptcy petition.
Filing Chapter 13 in Phoenix
A Chapter thirteen repayment program won’t stop the mortgage of yours, though it is able to add your mortgage arrears in your repayment plan. So long as you are able to remain promptly for existing payments, you are able to remove arrears through Chapter thirteen bankruptcy, which could stay away from foreclosure. Contact our Chapter thirteen attorneys today to see whether filing for a Ch 13 bankruptcy could be the correct choice to stop the foreclosure of yours.
Another benefit of a Chapter 13 bankruptcy filing in Phoenix is the ability to strip a 2nd Lien or Jr. Mortgage. This ability makes it possible for you to get back on track while keeping your family home. This is another debt relief solution to allow you to save your home from being foreclosed.
Consult with a Bankruptcy Lawyer in Phoenix for More details There’s no assurance that bankruptcy is going to prevent foreclosure, but it generally does so. Phoenix Bankruptcy Attorney, Ryan Dorn advises you of top choices for the circumstances of yours. Save the family house of yours and prevent the foreclosure. Contact us at (480) 263-1699 or perhaps contact us on line today.