Nobody wants to lose their home, but sometimes it’s hard to come up with the money necessary to pay all the bills. Some people consider filing for bankruptcy as a way to prevent Foreclosure in Chandler AZ, but this may or may not be possible in any given case. There are a number of factors to take into account.
Type of Bankruptcy
Filing for any type of bankruptcy will at least temporarily stop foreclosure proceedings. However, a Chapter 7 bankruptcy won’t permanently stop Foreclosure in Chandler AZ. This type of bankruptcy only gets rid of most unsecured debts with the exception of child support, student loans, alimony and taxes, not secured debts like a mortgage. The lender can file to have the stay lifted and foreclose on the home or wait until the bankruptcy filing is completed and the stay is lifted to do so, but this type of bankruptcy isn’t a permanent solution. A Chapter 13 bankruptcy, on the other hand, may be able to solve the problem. This type of bankruptcy involves paying off debts using a payment plan lasting up to five years. As long as you follow the payment plan and continue to make the regular mortgage payments as well, you’ll be able to catch up on the mortgage and not get foreclosed on with this type of bankruptcy.
Other Potential Considerations
Keep in mind that both the lawyer and the court will have fees that need to be paid. Also, filing for bankruptcy will adversely affect your credit for a number of years, making it harder to get loans or credit cards for between seven and ten years. The payments will take up pretty much all of your money after the essential bills, meaning you won’t have money for any “extras” during this time. This means living very frugally for about five years, which may be hard for some people, as spending too much money is what caused the problems in the first place.
Click Here for more information on foreclosure and its effects on bankruptcy. Attorney Ashton B. Call can help with all your bankruptcy needs.