A person facing foreclosure or bankruptcy is understandably concerned about how such decisions impact a person’s credit. The reality is that no one knows for sure how these credit scores are computed. An Arizona bankruptcy lawyer or foreclosure lawyer may be able to provide some tips and tricks that a person can use to minimize credit damage.
Some people mistakenly believe that filing bankruptcy will force a mortgage lender to agree to a home modification. Not true. However, an experienced Arizona bankruptcy lawyer and real estate lawyer will advise you that you may be able to get rid of junior liens if the value of your home is worth less than what you owe on your first mortgage.
Once a person files bankruptcy, an “automatic stay” becomes effective, literally stopping all creditors in their tracks. This includes stopping foreclosures, garnishments and repossessions. However, this may only be temporary. A creditor represented by an Arizona bankruptcy lawyer can file a motion to get permission from the debtor’s bankruptcy judge to proceed with enforcing its rights.
All debtors must attend a 341 meeting of the creditors about a month after they file bankruptcy. So long as you have retained a qualified Arizona bankruptcy lawyer and provided all of the requested documents to the trustee, the 341 meeting will most likely be a smooth and painless experience.
There are many myths about the benefits of short sales. The downside of short sales may be much more than the upside because the legal ramifications and adverse consequences could be more severe than opting for a foreclosure. Always consult with an experienced Arizona real estate lawyer, an Arizona foreclosure lawyer or an Arizona bankruptcy lawyer before considering a short sale.