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When Nice Things Happen to Nice People, and They DON'T Need to file a Bankruptcy in Arizona!

By Joseph McDaniel, Esq.

I love it when I talk to people who are nice, and lucky!

Because so often I get to talk to people who are nice, and unlucky!

Recently I talked to a very smart, very capable guy who had a house that was waaaaaaaaaaaaaaaaaaay underwater.

It was worth maybe $50,000, and the mortgage was five times that.

A trustee's sale was threatened, but not yet underway.

And his mortgage payment was waaaaaay too high for that house.

He had been dancing with the Bank for TWO YEARS trying to get a mortgage modification with no luck.

Sort of.

From another perspective, he had remarkable luck; the bank has not done a trustee's sale and booted him and his family into the street.

And when he called me to ask about a bankruptcy, I asked how many mortgages he had, and he told me "one".

Now, he may have been the luckiest guy I've talked to in a while. He's still married, he has kids, he makes okay money, and the bank has let him live in the house for two long years without making payments!

So he's paid off all his credit card debt, and if the Arizona Anti-Deficiency Statute applies to him, he won't need to file a bankruptcy for the deficiency.

And since he's paid off his credit card debt, he won't need to file and use up his Get Out of Jail Free Bankruptcy Card!

I am very pleased!

Especially since he didn't burn through his retirement accounts, as so many misguided folks do.

In that, especially, he was very, very lucky.

Full post as published by Arizona Bankruptcy Attorney Blog on January 21, 2011 (boomark / email).