Does a Chapter 13 bankruptcy in Arizona save the home from foreclosure?
Maybe. In a Chapter 13, it works a little differently. In a Chapter 13, the amount that you are behind, (your arrears), will be put into your Chapter 13 Bankruptcy Plan. It will be thrown into your general pot of debt. Going forward, you do have to continue to show that you are able to make the house payments. The bottom line is that if a person can’t afford their mortgage payment, then Chapter 13 is not going to save them because they are going to have to continue to make those payments. NOTE: Chapter 13’s do allow for a lien stripping on a second mortgage or a third mortgage and basically anything that doesn’t have any equity that can be stripped away (through an adversary proceeding which is basically a lawsuit in the BK Court). Under the Bankruptcy Code it defines what unsecured debt is. If a second or third mortgage is unsecured, it may be subject to being stripped. How can you tell if there is equity? An appraisal will normally be done within 10-15 days of filing. The closer they
Related Questions
- How far in advance of the foreclosure sale do I need to file my chapter 13 in order to stop foreclosure, or if I know bankruptcy will end up my best solution should I just do it right now?
- I heard a Chapter 7 bankruptcy would not stop home foreclosure or auto repossession?
- Would Chapter 13 Bankruptcy Be Able to Stop Home Foreclosure?
