I’m pretty sure that few Phoenicians would be surprised at the fact that Arizona boasted the second highest foreclosure rate in the nation, during the periods of 2009 and 2010. Looking for some cold, hard facts? Try this one on for size – 300,000. That is the approximate number of foreclosures in Arizona over this two year time period. Frightening, isn’t it?
Struggling with debt is not fun. Between harassing calls from creditors and the threat of garnishment or repossession, it is no wonder that most Americans cite finances as their primary cause of sleepless nights. When you add foreclosure and the sudden risk of homelessness to the equation, those stress levels soar to unimaginable heights.
Fortunately, bankruptcy offers some tools to remedy a pending foreclosure. Through chapter 7, most Arizona bankruptcy debtors can eliminate personal liability from their home loans and walk away from an underwater mortgage free and clear. As you can imagine, this is especially useful for those homeowners that do not qualify under the current anti-deficiency laws.
Alternatively, chapter 13 bankruptcy may be beneficial to those homeowners hoping to cure current mortgage delinquencies and remain in their family home. By spreading past-due mortgage payments over the life of their bankruptcy plan, homeowners are able to cure mortgage delinquencies at their own pace.
In addition, chapter 13 offers the added benefit of eliminating personal liability of second mortgages, provided they are wholly unsecured at the time of filing. In today’s struggling housing market, this is pretty darn common. For more information on any of my above ramblings, don’t hesitate to contact me today. As a Phoenix and Tucson bankruptcy attorney, I know a thing or two about these things.