To lose your home is akin to losing a family member. It is a place that has offered warmth, comfort and love. It should be a safe haven, not a stressor.
Do not allow foreclosure to force you out of your home. Instead, work with one of our bankruptcy lawyers at The Turnaround Team. We will help you quickly address your foreclosure so you can move forward as you wish to—not as the bank says you need to.
– Brian M. Blum, Managing Attorney
Filing Bankruptcy Stops the Foreclosure Process
Your mortgage lender must stop the foreclosure process as soon as you file your bankruptcy petition. This is because filing immediately puts in place an automatic stay, which in effect freezes your lender’s ability to collect on the mortgage. What happens next depends on the type of bankruptcy you file.
Chapter 13 vs. Chapter 7 Bankruptcy
If you are behind on your mortgage, and want to keep your home, then Chapter 13 bankruptcy is your probably the better choice when it comes to which chapter to file under. This is because Chapter 13 provides you with the ability to restructure your debts under a three-to-five year repayment plan. It also helps you cancel other types of debt, such as loans or credit cards, which helps to make your mortgage payments more affordable.
If your goal is to temporarily stop the foreclosure and also eliminate as much debt as possible, you could opt to file for Chapter 7 bankruptcy. While this route will not permanently stop the foreclosure, it will slow down the foreclosure process and potentially allow you to remain in your home while you negotiate with your lender or until the foreclosure process starts again.
Bankruptcy Is Not Always the Best Choice
Here at The Turnaround Team, we never hesitate to tell our clients when certain actions are not in their best interests. It is our goal to help you do what you can to keep your home and make the right decisions for your future. So if filing bankruptcy to stop foreclosure is not the best step for you, we’ll say so. And then we’ll outline other options for you to pursue, including mortgage modifications. You will never be left standing alone.
Contact Our Attorneys to Stop Foreclosure on Your Home
Turn to us to turn around a bad situation. From our offices in Scottsdale, we offer full bankruptcy and foreclosure relief services to clients across Arizona.