Home Retention – What To Do When Bankruptcy is Near
When you’ve decided that filing bankruptcy is the right thing to do regarding your debt, you may still wonder if you’ll be able to keep your home. Considering that your home generally is your most valuable asset, you don’t want to lose it. That’s why it’s imperative to fully understand bankruptcy and come up with a home retention plan. This may help assure you’ll be able to keep your home.
Bankruptcy will give you the opportunity to deal with debt you can’t afford to pay off. However, it can also put you at risk for losing some of your assets such as cash, your car, and your home. The key to figuring out what assets can be seized depends on whether you’re filing Chapter 7 or Chapter 13 bankruptcy. It will also depend on the total worth of your belongings.
Chapter 7 Bankruptcy & Your Home Retention
Under Chapter 7, you’re declaring that you don’t have the disposable income available to make debt payments. You are also declaring you want to have your debt eliminated. You can keep your home if you’re current with your mortgage payments at the time of filing, and if your state laws allow you to exempt all the equity you have in the property. However, if you’ve already failed to make your mortgage payments on time when you file for Chapter 7, you’re at risk of losing your home.
If you are behind on your mortgage payments when you file for Chapter 7 bankruptcy, you’ll be able to stay in your home for a month or two. But, the bank may foreclose on your property. However, a process called bankruptcy discharge may help you. If the sale price of your home at foreclosure is less than what you owe on your mortgage, you can be released from the legal obligation to pay off your mortgage debt.
Chapter 13 Bankruptcy & Your Home Retention
Filing for Chapter 13 bankruptcy may be better than filing for Chapter 7 if you’re not making mortgage payments on time. Chapter 13 involves the court giving you the time you need to get current with your payments. Allowing the courts to handle your case provides a plan to repay your past-due mortgage payments over a three to five year period. This is all while continuing to make your current mortgage payments. If you’re able to handle both of these payments with ease, you can consider your home safe.
What Home Retention Plan is Right for You?
It can be difficult to come up with a solid home retention plan. It requires a lot of planning and a good understanding of your rights. Understanding your mortgage assistance options is also vital. That’s why it’s always a good idea to speak with an attorney who is well-versed in mortgage law. An attorney can help you develop a plan to save your home.
When you work with an attorney, they will take a good look at your financial situation. Once your attorney has a comprehensive understanding of your finances, they will talk with you about your options. Your attorney will also make sure that you’re filing for the right type of bankruptcy for your situation. They will work to increase the probability that you’ll be able to stay in your home.
Contact Bartifay Law Offices
If filing for bankruptcy is the best way option for you, the team at Bartifay Law Offices can help. We can assist you in developing a good home retention plan that will help you avoid losing your home. Contact us today for a consultation and a way out of the situation you’re in.