Chapter 13 Bankruptcy in Phoenix
The Phoenix real estate situation continues to look bleak, at least as far as valuations go. According to an article posted on Phoenix real estate website www.phoenixpowersearch.com, foreclosures in the Phoenix area continue at a rate of 3,000 to 4,500 units per month. While the article does mention some potential areas of improvement to the Phoenix market such as a decline in the Active Notices of Default for residential properties, this is of no help to Phoenix homeowners who have already had their home values slashed by fifty percent or more over the last four years. If you are one of these Phoenix homeowners, then a Chapter 13 bankruptcy may be a great way to improve your overall situation. For example, the majority of Phoenix residents owe more than what their house is worth. If this is the case for you and you have a second mortgage or home equity line of credit, you may qualify for what is called a Chapter 13 lien strip. A Chapter 13 lien strip would re-categorize your secured loan into an unsecured loan that can be discharged at the end of the Chapter 13 bankruptcy. This is just one of the ways that a Chapter 13 bankruptcy can ease the overall burden of your debts.
I am often shocked when I speak with potential clients at my Phoenix office and they do not realize the options and flexibility that a Chapter 13 bankruptcy can give them. A Chapter 13 bankruptcy case is a way to make one monthly payment for three or five years and then be back on track with your life and debt free. Also, during the pendency of the bankruptcy plan, your unsecured debts will go to zero percent and the credit card companies have to stop adding in fees and other costs immediately upon the filing of the case.
Unfortunately, many people are afraid of bankruptcy and afraid to even explore their options. At the very least, you owe it to yourself to speak with an attorney in the Phoenix area to find out more and discover if it might be a route worth taking. Phoenix residents should know that Chapter 13 bankruptcy can be an especially useful tool to solve their issues as a result of the real estate crisis that continues to plague Phoenix.
I am an Arizona attorney and my articles only deal with Arizona and Federal Bankruptcy law. All legal services offered to Arizona Residents Only. This article should not be construed as legal advice, if you need to file a bankruptcy, contact an attorney in your state.