Chapter 13 Bankruptcy and Foreclosure

Though bankruptcy and foreclosure often go hand in hand, many individuals rightfully find the prospects of starting over financially and losing their homes to be overwhelming. Luckily, individuals who still draw incomes may be able to save their homes through bankruptcy.

In many cases, declaring Chapter 13 bankruptcy before being served with a foreclosure notice can help an individual hold on to his or her home. If you are facing the prospects of bankruptcy and foreclosure, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, at 480-829-0494.

How Chapter 13 Helps

Under Chapter 13 bankruptcy, individuals are given the opportunity to sort out their debts and work out manageable repayment plans with their creditors. During this period of negotiation, the individual’s debts are placed under an automatic stay, meaning creditors cannot actively attempt to collect the monies that they are owed.

One notable feature of Chapter 13 bankruptcy is that there are few restrictions on what debts can be renegotiated. This includes home mortgages. Individuals can often work out repayment plans with their mortgage lenders to pay their past-due balances. If they can keep current on future payments, they are often allowed to keep their homes.

As with any financial matter, certain restrictions may apply, so it is important to speak with an experienced lawyer before making any decisions.

Contact Us

The Arizona bankruptcy lawyers of the Harmon Law Office, LLC, may be able to help you keep your home through a Chapter 13 bankruptcy filing. Contact us today at 480-829-0494 for a free initial consultation about your current situation.