Will I Lose My House in Bankruptcy?
Southern Arizona Chapter 7 Lawyer
Your home – your sanctuary – is not just a place you rest your head at night. It is a repository of family memories.
Your home is your most cherished asset. Unfortunately, you may be one of the hundreds of thousands of homeowners in Arizona whose house is worth less than what you owe on your mortgage. In fact, approximately 50% of people in Arizona are underwater in their mortgage.
As home values drop, and costs for food, gasoline and other necessities increase, foreclosure rates are skyrocketing.
If you have mounting debts, you may be struggling to stay current with house payments, utilities and credit card bills. At this point, you may be weighing your options. Do you walk away or find solutions that allow you to eliminate debt or pay most of your debt, affordably and over time?
Our Commitment: Helping Arizona Families Regain Financial Health
At Vidrine Law Firm, PLC, we are dedicated to helping families in Southern Arizona find effective ways to eradicate debt, avoid foreclosure and stay in their homes.
Our Southern Arizona Chapter 7 bankruptcy attorneys have helped many individuals and families in Oro Valley, Marana, and the Greater Tucson area, obtain debt relief and re-invigorate their financial lives.
How Bankruptcy Helps You Avoid Foreclosure
If you are late in your payments, in default, or have been notified by your mortgage company that they are seeking foreclosure, it is important to take immediate action. The moment you file for bankruptcy, the bankruptcy judge issues an automatic stay which puts a stop to all foreclosure activities.
Eliminate Unsecured Debts in Chapter 7 to Pay Mortgage Bills
In a Chapter 7 bankruptcy, you can legally and quickly wipe out your unsecured debt, including hospital bills, payday loans, department store charges and personal loans.
When your debts are discharged (eliminated) in a Chapter 7 bankruptcy, this gives you more disposable income to pay your mortgage, car payment, groceries and current utility bills.
You will have additional peace of mind knowing that Chapter 7 Bankruptcy can eliminate hospital bills and medical debts. This is especially beneficial to people who are seriously ill, recovering from an accident or who lack health insurance.
Wage Earner’s Plan to Keep You in Your Home
If you have a steady job and want a powerful way to stay in your home, look to a Chapter 13 bankruptcy plan. Just as in a Chapter 7 bankruptcy, a Chapter 13 can put an automatic halt to any collection or foreclosure activities.
If you are behind in your house payments, a Chapter 13 reorganization plan can help you pay your mortgage arrears within 3 to 5 years.
Strip Away Second Mortgages
Second mortgages, known as home equity lines of credit (HELOC), can literally be stripped away if you owe more on your home than what it is currently worth. In a Chapter 13 bankruptcy, you can legally eliminate second mortgage debts through a process known as “lien-stripping.”
Although your second mortgage started out as a “secured debt” when the value of your home was high, the bankruptcy court may now rule your second mortgage an “unsecured debt” because your home’s current value can no longer secure the second loan.
Other Solutions to Help You Keep Your Home
Although every situation is unique, you can avoid foreclosure by talking to an experienced Southern Arizona bankruptcy attorney at the Vidrine Law Firm, PLC. He can explain other options to help you keep your home, such as loan modification. Call 520.885.1106 for a free consultation today.
