Yes, if you file Chapter 13 before the creditor has sold the car. In Arizona, repossessed cars must be held for 10 days. After that time, the creditor may sell the car. [9-98]
For more information, see Car Repossession.
Yes, if you file Chapter 13 before the home is sold in a foreclosure sale.
When you file Bankruptcy, a stay is automatically put in place which prohibits the commencement or continuation of the foreclosure. [11 U.S.C. § 362] However, the sale is not stopped by the bankruptcy filing. It is only suspended. Arizona law [ARS § 33-810] postpones the foreclosure sale even if those who are conducting the sale are not aware of the bankruptcy.
If your Chapter 13 plan is approved by the court and you successfully complete the plan, the foreclosure will be permanently stopped. If your plan is not approved, or if you are unable to complete the plan, the stay will be terminated. The foreclosure sale can be completed without any notice to you if the stay is terminated.
Chapter 7 also causes the stay to be put in place, and it will temporarily suspend foreclosure sale. The foreclosure can be completed when the stay is lifted at the end of the bankruptcy, or sooner if the creditor requests. [2-12-99]
For more information, see Home Foreclosure.
I received a foreclosure notice giving me the date that they will hold a sale on my home. When do I have to move out? If I file Chapter 7 am I giving back the house? How much time do I have to file either Chapter 7 or 13?
You have asked several questions and I will attempt to address each of them:
When will you have to move out? The short answer is that if you are not out of the property in about two weeks after the foreclosure sale date, you can be physically removed. Let me explain...
A foreclosure notice under a Deed of Trust in Arizona will specify that date on which the property will be sold. If the sale is conducted on that date--the sale could be continued to a later date, but you do not have to be given notice--you will be living on someone else's property.
If you file Chapter 7, are you giving the property back? Yes. I would not choose those exact words, but a Chapter 7 generally does not enable you to stay in the property. The stays which go into effect when you file the Chapter 7 do temporarily suspend the foreclosure sale (if it has not been held), or the forcible detainer. But since it will not help you catch up on missed payments, the Bankruptcy court will, in most cases, remove the stays upon the mortgage company's request and allow the foreclosure or forcible detainer action to be completed.
How much time do you have to file? If you file Chapter 13 to keep your home, you must do so before the foreclosure sale date on your property. The automatic stays will then stop the sale. If your plan provides for the curing of back payments on your mortgage, and if you make the payments which become due after the case is filed, you should be able to keep the property.
Filing means the date that the petition commencing your bankruptcy is delivered to Bankruptcy Court. It is not the date that you hire your attorney, return his questionnaire or pay him. You must take care of these matters enough in advance of the sale date to give him the time he needs to get the case filed.
If you are filing Chapter 7 the filing date is much less important since it will not help you keep the home.
In 1999 a firm of collection attorneys got a judgment entered against me. Now they have gotten a bench warrant for my failure to answer a subpoena. Then, a few days ago, when I came home, there was a notice taped to my door from a sheriff who had been sent to deliver court papers, with the word LEVY circled on the bottom. What happens with the warrant, levy & judgment?
This page was last revised: 09/18/04