People facing real estate foreclosure need to know their rights and what to expect. The bankruptcy lawyers at Knochel Law Office have been serving the needs of Bullhead City, AZ, residents for nearly 30 years. They want to make sure the public understands bankruptcy, foreclosure, and anti-deficiency laws.

When you default on a home loan secured with real estate under a mortgage or a deed of trust, the creditor has the right to foreclose on the loan and sell the property. If the sale proceeds are not enough to cover the loan amount owed, the difference between the sale proceeds and the amount owed is called a deficiency.

Filing a bankruptcy petition protects you from foreclosure. When individuals or their lawyers file Chapter 13 or Chapter 7 bankruptcy petitions, the bankruptcy court issues an automatic stay of all collection activity, including foreclosure. The creditors listed in the petition must stop any action related to the debts owed. To take further action, a creditor must ask the court to lift the automatic stay, which requires a special hearing.

Even if the bankruptcy court lifts the stay and allows a foreclosure sale to proceed, Arizona’s anti-deficiency laws protect homeowners. For example, if a one- or two-family home on 2.5 acres or less is foreclosed on and sold under a deed of trust created earlier than 2015, the foreclosing creditor’s recovery is limited to the sale proceeds. If the sale does not bring in as much as you owe, the creditor cannot collect the deficiency.

Since 1987, the lawyers at Knochel Law Office have been representing Bullhead City clients in foreclosure and bankruptcy proceedings. These attorneys can be counted on to deliver effective legal aid and are known for achieving successful outcomes for clients in difficult circumstances.

To protect your property from foreclosure and deficiency judgments, contact a bankruptcy lawyer at Knochel Law Office today. Call (928) 444-1000 for an appointment, or visit their website to learn more about their services.