Readers of the Mesa Bankruptcy Law Blog may have read the post recently describing bankruptcy and the benefits of filing for bankruptcy in the face of financial struggles. Perhaps one of the benefits of filing for personal bankruptcy most relevant to many Arizona residents, whether it is Chapter 7 or Chapter 13 bankruptcy, is the automatic stay placed on foreclosure proceedings.
Many Arizona residents may have bought property during the real estate boom, only to realize they were underwater on their mortgage when the housing market's tide turned. Oftentimes, its not just the value of a house that has decreased but raw land that lost value before development could begin. In some circumstances, people have done everything they could to hold on to their residential home, including cashing out their personal savings accounts and 401(k)'s, but to no avail.
In these situations, lawyers at our firm understand that everyone's circumstances are different and it is not possible to find a solution to fit everyone. That's why we explain the difference between Chapter 7 and 13 bankruptcy to debtors. Filing for Chapter 7 bankruptcy can end up delaying foreclosure for a number of months, and debtors may even be able to save their home if they file for Chapter 13 bankruptcy.
Deciding to file for bankruptcy is not easy and the lawyers at our firm understand that hard working people make financial mistakes and end up with unmanageable debt despite trying very hard to avoid just that. We work with families and individuals and help them come up with a solution to help them get back on their feet again.
Source: For more information about bankruptcy and foreclosure, visit our webpage.