Foreclosure in Chandler AZ: How Can Bankruptcy Help?

by | Oct 1, 2014 | Lawyers

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There is nothing that makes a person feel more powerless than getting into a debt trap and becoming insolvent. When this happens, many people just watch as everything they have worked hard for gets auctioned off to repay their creditors. However, with the help of experienced bankruptcy lawyers, it is possible to save the things that you consider most important to you, including the home. Here are some things you should know about , and how filing for bankruptcy can help.

The foreclosure issue

The road to a foreclosure starts when a homeowner falls behind in their mortgage payments. Most of the times, when you are a month or two behind, talking to the lender can help you buy some time before they move to the next step. However, when you keep missing the payments, the lender will issue a NOD (notice of default). This is a formal document which indicates that you have not been making mortgage payments.

At this point, there are only two ways in which you can save the home. The first is getting the money needed to bring the mortgage payments up to speed and pay any fines accrued. This can be difficult, especially if you are having financial problems. It will lead you to the second option, filing for bankruptcy. There are other methods such as a short sale, but if the goal is retaining the home, this will not work.

The automatic stay

The amount of help that a bankruptcy will offer in protecting your home from getting auctioned off depends on the particular bankruptcy type that you file for. If you file for a chapter 7, the stay will delay the foreclosure for a few months and give you time to make the payments. With a chapter 13, you may be able to completely save the home from foreclosure. Chapter 13 allows you to come up with new terms of payment whereby you get more time to repay the lender. If you have a second or third mortgage, lien stripping could assist you eliminate these payments.

All these are issues you will get to understand when you hire an attorney to help you fight Foreclosure Chandler AZ. to learn more about foreclosure and debt management

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