If you’re in bankruptcy, one of the biggest worries is your mortgage payments and whether foreclosure is in your future. When mortgage payments fall behind, a recorded trustee’s sale notice can turn financial uncertainty into an urgent deadline. For homeowners trying to stop Glendale foreclosure with bankruptcy, speaking with bankruptcy lawyers in Glendale at Lerner and Rowe Law Group can help clarify the available options before the scheduled sale date.
Bankruptcy will not eliminate a mortgage or ensure that someone keeps their home. It can usually put off a sale that was going to happen and give the people time to look at their mortgage, other debts, and household income and figure out what they should do next.
This blog explains Arizona trustee-sale rules, the automatic stay, and the differences between Chapter 7 and Chapter 13 when foreclosure is a concern.
The Timing of an Arizona Trustee Sale Notice
The trustee is the person or company that handles the sale process. The trustee records the notice of the trustee’s sale and sends the notices required by law. Under A.R.S. 33-807, the sale cannot happen until at least 91 days after the notice of sale is recorded. In Arizona, most home loans use a deed of trust. If you fall behind on payments, the lender can have a trustee begin the foreclosure process without first filing a traditional lawsuit in court.
An A.R.S. 33-807 trustee sale in Glendale matters may involve the recorded notice, the trustee’s communications, the loan history, and whether the sale was postponed.
A trustee sale is a public auction of the home. If the sale goes forward, the home may be sold to the highest bidder. To stop a trustee sale in Glendale, confirm the sale date, review the notices you received, and consider whether bankruptcy may be an option.
An attorney can review the terms of your mortgage and explain how a bankruptcy filing may address them.
How the 11 USC 362 Automatic Stay In Glendale Works
When a bankruptcy petition is filed, the 11 USC 362 automatic stay in Glendale takes effect immediately. The stay pauses collection activity as well as the pending trustee’s sale while the bankruptcy case is active.
Depending on the case, the stay will also stop:
- Collection calls and letters about pre-filing debts
- Pending lawsuits and certain collection actions
- Some efforts to enforce a lien without bankruptcy court permission
The automatic stay is not permanent. A mortgage lender may ask the bankruptcy court to lift the stay if the debtor is not paying or the collateral is not protected.
Stop Glendale Foreclosure with Bankruptcy: Chapter 7 and Chapter 13
Chapter 7 and Chapter 13 bankruptcies are different. For someone seeking to stop Glendale foreclosure with bankruptcy, here’s what to know for each:
- Chapter 7: The automatic stay may temporarily pause a trustee’s sale while the case proceeds. However, Chapter 7 does not create a repayment plan for past-due mortgage payments.
- Chapter 13: Eligible homeowners with regular income may be able to address mortgage arrears through a court-approved repayment plan that generally lasts three to five years.
- Ongoing mortgage payments: A Chapter 13 plan may address past-due payments, but homeowners generally still need to make ongoing mortgage payments during the plan.
- Mortgage lien: A bankruptcy discharge does not automatically remove the mortgage lender’s lien from the home.
The U.S. Courts’ Chapter 13 overview explains that Chapter 13 may help individuals save their homes from foreclosure, subject to the requirements of the case and repayment plan. A Chapter 13 bankruptcy attorney can assess whether a repayment plan, income, mortgage arrears, and other debts may support that approach.
What Bankruptcy Does and Does Not Do for a Glendale Homeowner
When filing for bankruptcy, it’s important to know what it does and doesn’t do. Both Chapter 7 and Chapter 13 filings will not:
- Cancel the mortgage lender’s lien
- Require the lender to approve a loan modification
- Guarantee that the home can be kept
- Prevent a lender from asking the bankruptcy court for relief from the automatic stay
Home equity and mortgage debt are separate issues. An exemption may protect some home equity from certain creditors, but it does not remove the mortgage lender’s lien. Before filing, an attorney should review the home’s value, mortgage balance, missed payments, insurance, taxes, and any other liens.
Read our Arizona bankruptcy FAQ for help with general filing questions.
What to Do When a Trustee Sale Is Scheduled
A bankruptcy filing does not undo a completed sale simply because a homeowner later decides to file. Once a trustee’s sale has occurred, the legal analysis can change significantly. Bankruptcy may still address qualifying unsecured debt or a potential deficiency balance, but it does not automatically reverse every completed transaction.
If a sale is scheduled, gather:
- The notice of trustee’s sale and any postponement notices
- The deed of trust, promissory note, and recent mortgage statements
- Records of missed payments, fees, and communications with the loan servicer
- Proof of income, current expenses, and other debts
- Information about property taxes, homeowners insurance, and HOA obligations
- Documents from any prior bankruptcy filing or loan-modification application
Know that some qualifying debts may be discharged in bankruptcy, but secured mortgage debt and foreclosure timing require more consideration.
Contact a Glendale Bankruptcy and Foreclosure Lawyer Near Me
The threat of losing a home can affect every part of a household’s life. If you are considering how to stop Glendale foreclosure with bankruptcy, Lerner and Rowe Law Group can review the trustee-sale timeline, mortgage documents, and bankruptcy options with you.
Lerner and Rowe Law Group is available 24/7 and offers flexible payment plans.
Call (602) 667-7777, reach us via LiveChat, or fill out our secure online form to schedule your free, confidential consultation.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.