The United States is currently recovering from one of the worst economic downturns in history. However, a lot of Arizona families are still suffering from economic decline. Some of these individuals are even in danger of losing their homes through foreclosure proceedings. If you are one of these people, know that legal measures might exist, which could help save your home.
One of the most common ways to stop home foreclosure, for example, is Chapter 13 bankruptcy. Chapter 13 bankruptcy, also known as debt reorganization, is a way for you to consolidate your debt and pay it off over time via a court approved bankruptcy repayment plan. One of the biggest benefits of Chapter 13 proceedings — and why many Arizona residents choose to go through the process — is the fact that Chapter 13 proceedings can sometimes stop the foreclosure process in its tracks.
Chapter 13 bankruptcy can help people who have gotten behind on their payments save their homes. Past-due payments are paid over time in Chapter 13, and no further interest or penalties are triggered by them. The bankruptcy process often gives homeowners the breathing room they need to get back on track again.
Arizona debtors know that Chapter 13 proceedings take between three and five years to complete. They should also know that Chapter 13 is not for everyone — particularly those who do not have a reliable source of income. If you are suffering from debt trouble, and you are in danger of losing your home to the foreclosure process, you may wish to speak with an Arizona bankruptcy attorney about whether the Chapter 13 process is right for you.