Falling behind on mortgage payments can quickly become overwhelming, especially when you are worried about losing your home. If you are facing foreclosure because of overwhelming debt, a Phoenix bankruptcy and foreclosure lawyer at Lerner and Rowe Law Group can help you understand your legal options and determine whether bankruptcy may provide a path toward financial relief.
Bankruptcy may be able to stop or delay foreclosure proceedings and give you additional time to address your financial situation. The right strategy depends on your income, debts, mortgage status, and other circumstances.
Our Arizona debt relief attorneys can help provide clarity and actionable steps to improve your circumstances. Call or connect through Live Chat to schedule a free consultation, no obligation evaluation.
Can Bankruptcy Stop Foreclosure in Phoenix?
Filing for bankruptcy in Arizona generally triggers an automatic stay, which can stop many collection activities, including foreclosure proceedings. This protection can give homeowners time to evaluate their options and determine how to move forward.
However, the automatic stay does not necessarily eliminate the mortgage or permanently prevent foreclosure. A mortgage is a secured debt, and lenders may be able to seek relief from the stay under certain circumstances.
Speaking with a Phoenix bankruptcy lawyer before a foreclosure sale may help you better understand what bankruptcy could accomplish in your situation.
Chapter 7 Bankruptcy and Foreclosure
Chapter 7 bankruptcy can discharge many qualifying unsecured debts, potentially freeing up income that can be used toward necessary expenses such as a mortgage. However, Chapter 7 generally does not eliminate a mortgage lender’s lien against your home.
If you are significantly behind on your mortgage, Chapter 7 may not provide the same repayment flexibility as Chapter 13. Your eligibility, home equity, and applicable Arizona bankruptcy exemptions should also be considered.
Chapter 13 Bankruptcy and Foreclosure
Chapter 13 bankruptcy may be an option for homeowners with regular income who want to keep their homes while catching up on past-due mortgage payments.
Rather than requiring you to immediately pay the entire delinquent amount, a Chapter 13 repayment plan generally lasts three to five years and can allow qualifying debts to be addressed over time. The automatic stay can also stop many collection efforts after the case is filed.
Chapter 13 does not simply erase mortgage debt, and you generally must continue making required mortgage payments going forward. However, for some Phoenix homeowners, restructuring debts through Chapter 13 may make it possible to address arrears while retaining their homes.
What If My Home Is Already in Foreclosure?
The timing of a bankruptcy filing can be particularly important when foreclosure proceedings have already started. Depending on where the lender is in the foreclosure process, bankruptcy may still provide options, but there are important limitations.
If you have received foreclosure notices, missed multiple mortgage payments, or have been given a foreclosure sale date, do not assume that you have run out of options. A bankruptcy attorney can review your circumstances and explain what protections may be available.
Phoenix Bankruptcy and Foreclosure Lawyers: Mortgage Payments
Mortgage problems often occur alongside other financial difficulties. Credit cards, medical bills, personal loans, car payments, and other obligations can make it difficult to keep up with housing costs.
Depending on the type of bankruptcy, qualifying unsecured debts may be discharged or reorganized. Reducing other monthly obligations may make it easier to manage ongoing household expenses and mortgage payments.
Lerner and Rowe Law Group’s bankruptcy attorneys focus exclusively on bankruptcy matters and assist Arizona clients with Chapter 7 and Chapter 13 filings.
How Can a Phoenix Bankruptcy and Foreclosure Lawyer Help?
A bankruptcy attorney can review your financial circumstances and help you understand the potential consequences of filing. The legal team at Lerner and Rowe Law Group can assist with:
- Reviewing your mortgage and other debts
- Determining whether Chapter 7 or Chapter 13 may be appropriate
- Explaining how the automatic stay could affect foreclosure
- Reviewing potentially applicable Arizona exemptions
- Preparing and filing bankruptcy documents
- Communicating with creditors
- Guiding you through the bankruptcy process
Contact a Phoenix Bankruptcy and Foreclosure Lawyer Near Me
If you are behind on your mortgage or facing foreclosure, taking action sooner may give you more opportunities to address your financial situation. The Phoenix bankruptcy team at Lerner and Rowe Law Group can review your circumstances and explain whether bankruptcy may help protect your home and provide meaningful debt relief.
Call Lerner and Rowe Law Group to schedule a free consultation. You can also submit an online contact form or use LiveChat to connect with the team and learn more about your options.