Will I Lose My House

Phoenix, Arizona Chapter 7 and 13 Bankruptcy Attorney

Fear of losing their house and car prevents many people from filing Chapter 7 and 13 bankruptcy. Unfortunately, there is a popular misconception that those who file for bankruptcy are likely to lose their homes. In reality, it's in the financial self-interests of banks to create a payment plan that allows people to stay in their home rather than entering into foreclosure. In today's housing market where the subprime mortgage disaster has resulted in declining home values, banks that foreclose on a house prematurely stand to lose more money than if they readjusted a homeowner's mortgage payment schedule. Once a bank forecloses on a home, there is no guarantee they will be able to recover their losses if they must now sell if for substantially less than what it was originally mortgaged for.

The law firm of Gukeisen Law Group, P.C. in Phoenix, Arizona, works with clients and creditors in creating repayment plans that allow people to keep their home and gain control of their financial lives again.

To schedule a free consultation and discuss the options available to you, contact the Bankruptcy Helpers at Gukeisen Law Group today.

Exemptions Under Chapter 7 and Chapter 13 Bankruptcy

Filing a Chapter 7 bankruptcy provides a homestead exemption of $125,000. If your issue relates more to delinquent payments on your mortgage or car, those debts can be satisfied in a Chapter 13 bankruptcy with a larger percentage of payments going to the trustee. Since Chapter 13 is a reorganization of your debt, you will still be required to pay back a portion of the debt over a 3 to 5 year period. If you can keep current on your mortgage payments, you should have no problem avoiding foreclosure. If, however, your mortgage payments are more than you can afford given your other debts, it may be possible to arrange a repayment schedule agreeable to your bank.

The Gukeisen Law Group, P.C. have helped clients who have already had their house foreclosed upon with a sale date scheduled. Once you file bankruptcy, the sale of the house has to be cancelled and any collection and repossession efforts regarding your car must be stopped as well. Even if the bank files a "relief from stay," there are legal options available to homeowners that can help them avoid losing their home.

While many things need to happen for you to lose your house or car, you do have the option to just give it up and move on to a new residence or vehicle. While you are losing prized possessions, you are also unloading a significant amount of debt and a great deal of stress.

Contact Bankruptcy Helpers at Gukeisen Law Group Today

For more information or to schedule an appointment regarding a Chapter 7 and 13 bankruptcy, please contact us.

To learn more about bankruptcy, please visit our Bankruptcy FAQs.