Stopping the foreclosure process on my home.
The bank has already started the foreclosure process on my home, is it too late to act? No. As long as the foreclosure process has not yet been completed, filing bankruptcy can stop the foreclosure process and allow the debtor an opportunity to bring the payments current and thereby “cure the default.” The right to cure is allowed to debtors filing a Chapter 13 bankruptcy on both secured debts, such as a mortgage, as well as unsecured debts, regardless of whether or not this right is allowed under state law. This is the case even after the debtor has received notice of initiation of the foreclosure process by the bank and the foreclosure process is nearing completion. As long as the foreclosure process has not yet been fully completed by the creditor under state law the debtor will have the right to stop the process, bring the mortgage current, and retain their home. The process of Arizona bankruptcy and foreclosure can be difficult and unique for each situation. If you are working through issues such as these, it would be in your best interest to consult with a competent Tucson bankruptcy attorney before taking any action.