When you are not making your mortgage payments, the bank has the right to foreclose on your home. When this happens, you are legally required to leave your home, permanently. Before you lose your home to foreclosure in Glendale, AZ, you should consider contacting a bankruptcy lawyer. There are ways that filing for bankruptcy can help.
Filing for Chapter 13 Bankruptcy
When you file for Chapter 13 bankruptcy, you are given extra time to pay off your debts. When you are working with your lawyer to consider the time frame that will work for you, you should keep in mind that you need to pay off your back payments, as well as keeping up with your current ones. It is important that you give yourself ample time.
Automatic Stay
When you file for Chapter 7 or Chapter 13 bankruptcy, the court will issue an automatic Order of Relief. When this happens, all of your creditors will be instructed to cease and desist from any further collection attempts. If a foreclosure sale has been scheduled for your home, it will be postponed until the bankruptcy is filed, which will give you three to four months to prevent the foreclosure. There are two instances where an automatic stay cannot buy you time.
1. If the lender files a motion to lift the stay, and the motion is granted, the foreclosure sale can still go on as planned.
2. If the foreclosure notice has already been filed, an automatic stay will not stop the clock on the advanced notice that you have already received.
Worst Case Scenario
The worst case scenario is that filing for bankruptcy does not help you keep your home. Even if you are told that filing will not save your home, there are still benefits to doing so. When you file for bankruptcy, it can help you get out of your mortgage debts and tax liability. Even if you lose your home, you can still land on your feet, without so much debt.
If you are at risk of losing your home due to foreclosure in Glendale, AZ and need help, visit the site for more information on how filing for bankruptcy can help save your home.
