Chapter 7 Bankruptcy and Foreclosure

The financial circumstances that lead an individual to the point of considering a bankruptcy filing can be frightening. When the state of financial despair is coupled with the looming threat of foreclosure, the combination can be overwhelming. Unfortunately, these two situations often go hand in hand, leaving individuals without a home and, often, without financial stability.

In some cases, individuals who file Chapter 7 bankruptcy can put off their foreclosure for several months. If you or someone you know is headed toward both bankruptcy and foreclosure, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, at 480-829-0494 today.

How Chapter 7 Helps

When an individual declares Chapter 7 bankruptcy, an automatic stay is placed on all of the individual’s debts. This means that bill collectors, including mortgage lenders, are not allowed to contact the individual about his or her debts for a set period of time, which is usually three or four months.

Under Chapter 7 bankruptcy, individuals will still be required to give up their homes in many cases, because they may not be able to cover the back payments that they owe as well as stay current on future payments.

It is important to note that individuals who declare Chapter 7 after receiving a foreclosure notice may not be able to put off their foreclosures, so it is important to speak with a lawyer to receive more specific information about certain cases.

Contact Us

The Arizona bankruptcy lawyers of the Harmon Law Office, LLC, may be able to help you put to temporarily delay foreclosure proceedings while you try to reach an agreement with your lender. Contact us today at 480-829-0494 to learn more about your legal options.