If you are looking for a mortgage foreclosure defense, working with a bankruptcy lawyer in Glendale, AZ might make all the difference and possibly even allow you to keep your home. A foreclosure of mortgage can be incredibly stressful for any homeowner, especially when you are already under financial strain. The thought of losing one’s home is often enough to make people take action.
What Causes a Mortgage Foreclosure and How Can You Avoid it Through Bankruptcy?
Foreclosure of mortgage typically happens when homeowners are unable to make mortgage payments due to financial problems. This could mean falling too far behind to catch up, whether it is due to medical bills, unemployment, or major debt, or it could be because an interest rate has been adjusted and mortgage payments are now too high to handle given other financial concerns. Either way, what causes a mortgage foreclosure amounts to a lack of funds and too much debt.
Bankruptcy can be a mortgage foreclosure defense, if you choose to file a Chapter 13 bankruptcy with a bankruptcy lawyer in Glendale, AZ. A Chapter 13 bankruptcy allows you to set up a payment plan, on a monthly basis, based on your income and debts. You must meet certain requirements to do so, and your bankruptcy lawyer can assist you in determining if you are eligible. The monthly payments will be distributed among your creditors, so your mortgage arrearages will be paid off over time. The best news is that you will be able to keep your property, so long as you make the payments.
If you are forced to file Chapter 7 bankruptcy, however, all nonexempt assets can be liquidated to pay back your debts. A Chapter 7 bankruptcy will not allow you to mount a mortgage foreclosure defense, but can offer different benefits. For many people, it is easier to qualify for a Chapter 7 bankruptcy. If keeping your home is very important to you, you should talk to your bankruptcy lawyer in Glendale, AZ about what causes a mortgage foreclosure and whether you can avoid it by using a Chapter 13 bankruptcy filing to your advantage.
Nobody wants to have to consider bankruptcy, or to lose their home, but if you are facing financial challenges that you cannot surmount on your own, there is nothing wrong with getting help.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.