Depending on the value of your home, creditors can now take it if they get a judgment.

Introduction:

Arizona homeowners, there’s a new law in town, and it’s got some folks worried. Starting January 1, 2022, things are changing, and it might affect how safe your home is. Creditors can now sue and take your home in certain circumstances. Let’s talk about what this means for you and your family.

Understanding Homestead Protection:

For a hundred years, Arizona had laws that kept your home safe, even if you’re in financial trouble. It’s called homestead protection. Basically, it stopped creditors from taking your home away to pay off debts, giving you a kind of shield to keep your family safe.  That is, until the law changed.

The Big Problem:

But now, there’s a new law that’s shaking things up. It’s making people nervous because it gives creditors more power to take your home if you owe them money. This means your safe place might not be as safe as it used to be.

Dealing with the Stress:

If you’re already struggling to make ends meet, this news can feel overwhelming. The thought of losing your home is terrifying and adds a whole new layer of stress to your life. It’s like the ground beneath you is suddenly shaky, and you don’t know what to do.

What It Means for You:

This new law has serious implications. It means creditors could come after your home more aggressively, putting your family’s stability and security at risk. The protection you thought you had might not be enough anymore, and that’s a scary thought.

Protecting Your Home Sweet Home:

So, what can you do to keep your home safe? First off, don’t panic. It’s important to understand your rights and get advice from someone who knows the law. They can help you figure out what steps to take to protect your home and your family’s future.

Bankruptcy Might be the Answer:

If creditors are calling or threatening to sue, then call me so we can talk about your options.

Warning:

NEVER REFINANCE YOUR HOME ONCE THERE IS A RECORDED JUDGMENT!!! Call me.

Understanding Bankruptcy Types:

Chapter 7 and Chapter 13. Here are two articles on the comparison between both chapters. and The difference between chapter 7 and chapter 13. Each of these links explains the key differences between Chapter 7 and Chapter 13 bankruptcy, including notes on how bankruptcy could impact keeping your home.

The Laws Governing Bankruptcy:

Even though bankruptcy is a federal law, the laws of the state you live in are still very important.  For instance, homestead exemptions are different in every state. Here is a link to Arizona exemptions Arizona Exemptions (29237 downloads)

In Summary:

Arizona’s new law is causing a lot of worry for homeowners. But by staying informed and getting help when you need it, you can take steps to keep your home safe. Remember, you’re not alone, and there are people who can help you navigate these uncertain times.