Going Bankrupt – Can You Keep Your House?

Filed Under Bankruptcy

Despite the repercussions that come with claiming bankruptcy, the personal bankruptcy process is still an effective way to eliminate a huge chunk of your debt. Be aware that bankruptcy negatively affects your credit rating for a long time. It also places your assets at risk for liquidation if you file a Chapter 7 bankruptcy claim.

People who consider bankruptcy tend to worry about their homes. They wonder if filing bankruptcy will force the sale of their home. So, is it possible to go bankrupt and still keep your house?

Fortunately, it is possible to keep your home but only under certain circumstances. Generally, you have a good chance of keeping your house if you’ve continuously made your mortgage payments on time and you don’t owe a substantial amount of money in back payments. However, each state is different and has its own “homestead exemption” laws – a qualified bankruptcy attorney can provide you with better advice on this. Ultimately, there is no guarantee that your home will be exempt from liquidation since each individual case is unique.

If you really want to keep your home, you might want to look into filing a Chapter 13 bankruptcy. Instead of liquidating all your assets, this type of bankruptcy formulates a repayment plan to give you the opportunity to pay off your debts. Chapter 13 is also termed as “reorganization” bankruptcy. The repayment plan is stretched over a 3 to 5 year period so that even people with regular incomes can keep up with payments. With this type of bankruptcy, people are able to retain their assets, including homes, vehicles and other valuable items. Once your claim has been processed, creditors are barred from collecting money or contacting you in any way.

Knowing that you can go bankrupt and still get a chance to keep your home is a relief. To learn more about whether or not bankruptcy is the right option for you, consider consulting with a reputable attorney in your area. Most reputable firms offer free initial consultations which can be a great way to learn a bit more about the bankruptcy process itself and what to expect before, during and after your claim has been filed.

No related posts.

  Tags:
bankruptcy, bankruptcy attorney, chapter 13 bankruptcy, chapter 7 bankruptcy, claiming bankruptcy, filing bankruptcy, go bankrupt, going bankrupt, how to go bankrupt, personal bankruptcy

 Comments