The plunge in the housing market has had a huge impact on homeowners in the Phoenix and Tucson areas. Because home values for many people are now less than what is owed on the home, people are faced with tough decisions.

Mortgage companies and lenders are forced to drag their feet on modifying loans due to uncertainty in whether federal stimulus money will come through. Meanwhile, while homeowners are waiting on whether the mortgage company will modify the loan, the house continues down the road of foreclosure.

Homes can be protected in bankruptcy. A Chapter 7 bankruptcy will allow you to keep your home as long as you continue to make the mortgage payments. If there is equity in the property and the property is your primary residence, Arizona allows $150,000 of equity to be exempt in bankruptcy.

On the other hand, a Chapter 13 bankruptcy will allow you to keep your home and save it from foreclosure. The Chapter 13 plan allows you to catch up on the arrears through the plan and stop any foreclosure sale dates. Contact us for further inquires on whether your real property will be protected in bankruptcy.