You’ve worked hard to buy a house and to provide a home for your children. However, life happens – maybe you’ve had your hours reduced at work, or an illness has caused large medical bills. Now the bank is breathing down your neck. Bankruptcy can be useful in helping you get back on track and keep your house. Of course, it does depend on your specific situation but filing for bankruptcy does not mean that you will automatically lose all of your property. In a chapter 7 case, you can keep all property which the law says is “exempt” from the claims of creditors. In determining whether property is exempt, you need to consider the value of the property and any loans you may have against the property.
If you are current on your mortgage payments, and you are also able to keep making the loan payments, Chapter 7 may be an option for you to wipe out your other, unsecured debts so that you can focus on your home. If you are behind on your mortgage payments, Chapter 13 may be able to help you stop a foreclosure and catch up on the back payments over a period of time
If you are considering bankruptcy, but are worried about how it will affect your home, please contact me atfor a free initial consultation.