When purchasing a home, losing the home to foreclosure was probably the furthest thing from your mind at the time.  Most homeowners are faced with exigent circumstances causing them to fall behind on their mortgage payments such as:

• Sudden illness or medical emergency
• Unexpected unemployment / job loss
• Excessive debt obligations
• Death in the family
• Divorce / loss of second income

A chapter 13 bankruptcy will immediately stop a foreclosure and allows you to save your home. The arrears owed on the mortgage are paid back through the Chapter 13 plan over a five year period. This allows a homeowner to catch up on back payments through the Chapter 13 plan.

The mortgage company may agree to modify your loan or put you in a hardship program such as a forebearance agreement. These are actions that the lender voluntarily takes and can cancel at any time. Mortgage modifications can take a substantial amount of time. In fact, the lender may tell you they are modifying the loan while at the same time they are pushing through a foreclosure. Timing is crucial when a foreclosure is filed or pending. In Arizona, the trustee's sale date is typically 90 days after the foreclosure is filed.

The Chapter 13 is a surefire way to stop the foreclosure dead in its tracks. Once filed, the homeowner is under the protection of the bankruptcy laws and all secured and unsecured debt are reorganized under the plan. The plan payment made to the court has to be something you can afford. The court has to be shown that you can afford to make these plan payments to the court to pay down part of your debt while still having enough for living expenses. Our Arizona bankruptcy lawyers will ensure your Chapter 13 is filed correctly and efficiently.