Legal Question in Bankruptcy in Arizona

Generally, if you are letting your house be foreclosed, it operates outside of the bankruptcy and is covered under Arizona's Anti-Deficiency Judgment Statute if you were living in the home (according to the new statute recently passed - which may be overturned soon). The exception to this is if you have a second mortgage that is an equity line of credit. In this case, it is put into the bankruptcy and no notices need be filed. This is, of course, a Chapter 7 bankruptcy I am speaking about. A Chapter 13 is a bit more complex. You need to determine which chapter you qualify for filing, if a bankruptcy is even a reasonable option for you. Finally, if you are keeping your home, you simply need to keep your payments current and you may keep the home.