My home in AZ had power of sale in April of this year. I have a HELOC that is attempting recourse. What assets will they take?
The laws surrounding your situation include to much detail to explain here. Arizona has “exemption” laws that protect some of your assets from creditors like the one you mention. You can find a list of the Arizona exemption on the Arizona Bankruptcy Court’s website: http://www.azb.uscourts.gov/documents/arizona_e…
Some of these exemptions are more complicated than they seem and some have exceptions, so I recommend hiring an attorney to evaluate your situation.
If you have the right attorney, you may be able to settle this debt for a fraction of the amount you now owe. I have seen incredible settlements in the last year. Many banks are looking for win-win situation where they get the most they believe they can get and the debtor is allowed to move on. If a debtor files for bankruptcy, the bank often gets much less than they may get in a settlement. This requires an analysis of your financial situation and of what property of yours is protected under the exemption laws. Another consideration is that there can be tax consequences from settling a debt. I recommend contacting an attorney so you can get a comprehensive view of your situation and determine your best options.