Chapter 13 bankruptcy is a legal process that allows individuals with regular income to reorganize their debts and create a repayment plan. Unlike Chapter 7, Chapter 13 focuses on debt repayment over three to five years. Chapter 13 bankruptcy allows you to use such a payment plan to pay off mortgage arrearages. Essentially, Chapter 13 stops foreclosures.
An Arizona bankruptcy lawyer or an Arizona real estate lawyer will advise that a lender cannot be compelled to foreclose and take title to property. As such, these delayed foreclosures are causing uncertainty and potential liability to the debtor.
Unlike a Chapter 7, a Chapter 13 provides the mechanism for a debtor to come current with overdue mortgage payments. But beware! If you lack regular monthly income and you refuse to curb your expenses, a competent Arizona bankruptcy lawyer will advise that Chapter 13 may end up being a waste of time and money.
An Arizona real estate lawyer, an Arizona foreclosure lawyer and an Arizona bankruptcy lawyer will warn clients that failure to pay HOA assessments will cause the HOA to sue the homeowner and collect such amount. Even Chapter 7 or Chapter 13 bankruptcy will not discharge all HOA assessments.
Any competent Arizona real estate lawyer, Arizona foreclosure lawyer or Arizona bankruptcy lawyer will agree that the Arizona anti-deficiency statute is one of the most important Arizona laws protecting borrowers with loans secured by a residence. This statute will prevent many mortgage lenders from suing debtors for any deficiency amount after a foreclosure occurs. In a surprise ruling, a recent Arizona Court of Appeals case has extended the Arizona anti-deficiency statute to construction loans.