You can keep your home in a Chapter 7 bankruptcy if it is below your state’s exemption amount. In Arizona, the homestead exemption is $150,000. Thus, your home may be worth more than $150,000, however, as long as you don’t have more than that amount of equity in the home, you can still keep your home and still file a Tempe Chapter 7 Bankruptcy. In the flip side, if you are in a Tempe Chapter 7 and have more than $150,000 equity in your home, the bankruptcy trustee may order the sale of your home and contribute the excess amount to your bankruptcy creditors.
If you are behind on your mortgage payments and are worried about foreclosure, a Chapter 13 Bankruptcy may help you save your home. This chapter allows you to spread out the past-due balance of your mortgage over the life of your payment plan, or 3-5 years. Additionally, while your chapter 13 case is active, your creditors can’t repossess or foreclose your property.
CONTACT A TEMPE BANKRUPTCY ATTORNEY AT MY AZ LAWYERS