Many families faithfully make their mortgage payments for years only to find themselves at risk of losing their family home as a result of a financial emergency that was not expected. Arizona has one of the highest foreclosure rates in the country. Approximately one in every 205 housing units in Arizona received a foreclosure filing in June. This amounts to a total of almost 13,500 homes that were subject to a foreclosure filing during that period. The loss of a family home can be a devastating experience both for you and your family.
When you are behind on your mortgage and facing foreclosure of your family home, it can impact your financial future, emotional wellbeing, family stability and retirement planning. Hundreds of thousands of people face foreclosure each year. During slow economic times, people that never imagined they would ever confront the loss of their home frequently face financial pressures that can result in the loss of their home and/or other assets and everything that they have built over a lifetime of hard work and diligent financial planning.
When you are struggling to pay your mortgage, the outstanding balances can quickly mount so that before you know it the past due mortgage arrearages are tens of thousands of dollars making the situation look hopeless. The good news is that at Stone Rose Law, we have helped people keep their home, cars, household furnishings and other valuable assets. Our Phoenix Chapter 13 bankruptcy attorneys have effectively used Chapter 13 to help our clients take control of their monthly cash flow while keeping their family home and other possessions. We also help Phoenix residents that cannot qualify for Chapter 7 obtain Chapter 13 bankruptcy relief.
Many people try to avoid the bankruptcy process and procrastinate in taking action because they are concerned about the consequences of bankruptcy. The reality is that if you are able to protect your family home and other assets by filing Chapter 13 and making monthly payments over the course of a Chapter 13 payment plan, you can effectively use the bankruptcy process to build a strong financial foundation. At the end of your Chapter 13 plan, you typically will be current on your mortgage and with narrow exceptions free of unsecured debt. In short, Chapter 13 is a way for you to keep your assets and eliminate debt after maintaining a payment plan over a 3 or 5 year term.
The most important factor in qualifying for a Phoenix Chapter 13 bankruptcy is that you have sufficient income to make your Phoenix Chapter 13 bankruptcy plan payments. Your income must be adequate enough to make both the current mortgage payments as well as monthly trustee payments toward your mortgage arrearages, other secured debt and some portion of your other unsecured debts. Many Phoenix residents file Chapter 13 because they cannot qualify under the means test for Chapter 7. It is a good idea to seek legal advice from an experienced Phoenix Chapter 13 bankruptcy lawyer promptly before the arrearages spiral out of control. The further behind you are on your mortgage, the more income you may need to feasibly fund a Chapter 13 bankruptcy plan.
At Stone Rose Law, we carefully analyze your situation to determine the best alternative to help you achieve your long-term goals. If you cannot qualify for a Chapter 7 or have a family home with substantial equity that you are trying to save, we may recommend a Phoenix Chapter 13 as the best bankruptcy strategy. While you must repay at least some portion of your unsecured debt in a Phoenix Chapter 13 bankruptcy, a Chapter 13 payment plan allows you to factor out payments on financial obligations over an extended period making the payments more manageable and discharging any remaining unsecured balances upon completion of your payment plan.
If you have sufficient income to finance a Phoenix Chapter 13 there is one other requirement that you must meet to qualify. There are both maximum debt limits for your total debt load and your unsecured debt to qualify for bankruptcy relief under Chapter 13. Our experienced Phoenix Chapter 13 attorneys can analyze your debt and evaluate your Chapter 13 eligibility.
A person seeking Chapter 13 relief in Phoenix must participate in credit counseling like those filing Chapter 7. While you must prepare a bankruptcy petition and schedules enumerating your income, creditors, balances and similar information, you must also develop a repayment plan that you can feasibly afford to have your plan approved by the bankruptcy trustee. The plan must provide for bringing secured obligations current, paying certain priority unsecured debts in full and paying a portion of unsecured debts that you can afford.
The priority debts that must be made current or paid in full include obligations like alimony, unpaid wages to employees, child support, certain tax obligations, spousal support and some other obligations. Arrearages owed on these types of priority obligations must be paid completely, or if they are ongoing obligations like child support, the arrearages must be paid in full.
Non-priority unsecured obligations like credit cards, medical expenses, charge cards, etc. will typically need to have some portion of your plan payment credited toward them, but only from disposable income after amounts have been allocated toward certain permitted monthly living expenses, all secured obligations and priority unsecured debts. Any amount that remains on unsecured non-priority debts at the conclusion of a Phoenix Chapter 13 payment plan is discharged.
The Phoenix Chapter 13 law firm of Stone Rose Law provides legal guidance and representation to clients who cannot pay their bills or who are facing foreclosure that are ineligible for Chapter 7 or that have assets that might otherwise be subject to distribution in a Chapter 7 bankruptcy. It is especially important to seek bankruptcy advice promptly before creditors take assets, or you lose your home. The earlier that you seek help the greater the probability that we can develop a Phoenix Chapter 13 payment plan that a court will approve because the payments are realistic.
Our experienced Phoenix Chapter 13 bankruptcy attorneys have helped many people just like you keep their property, protect their home and obtain relief from unmanageable financial obligations.
We recognize the pressure you are feeling if you are behind on your mortgage and struggling to pay your other creditors. Our experienced Phoenix Chapter 13 bankruptcy attorneys will work diligently to develop a customized Chapter 13 bankruptcy solution carefully crafted to fit your specific needs. We are prepared to answer your Chapter 13 bankruptcy questions so call Stone Rose Law today at 480-498-8998.