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Filing for bankruptcy is stressful and one of the biggest concerns people often have is whether or not they will lose their homes. Generally, the equity you have in your home will determine if you can keep it. If the equity in your home is completely exempt, you will likely be able to keep it. If you do not know what your equity is, you can calculate it by subtracting the loans and liens on the property from your home’s fair market value.
When you file for a Chapter 7 bankruptcy, the trustee who handles your case will have to sell off your non-exempt assets to pay off your creditors. If you are not late on your mortgage payments, you might be able to keep your home. If you are, however, chances are you will lose it. Generally, if you are more than 90 days late on your mortgage payments, the lender can foreclose.
Keeping your home is substantially easier in a Chapter 13 bankruptcy since it was designed to help people keep their property. When choosing this option, you will have to work out a payment plan with your lenders that will last anywhere from 3 to 5 years. Throughout the course of your repayment plan, you must stay current on your mortgage payments to keep your home. Falling behind on these payments can result in you losing your home.
Not everyone is able to keep their home. If your home is worth less than what you owe on it, it might not be such a wise decision to hang onto it. Make sure you discuss your options with an attorney to ensure you make the right decision and do not end up trying to keep a home that is no longer worthwhile.
If you are filing for bankruptcy and are afraid of losing your home, the good news is that there are ways for you to keep it. However, you will need the knowledgeable legal assistance of a bankruptcy attorney to help you navigate the process without making any unnecessary errors. At Bach Law Offices, Inc., we can provide the advice and guidance you need to get through this difficult situation.
Contact our law office at (847) 440-5998 to schedule a consultation with one of our attorneys to discuss your options and how you might be able to keep your home.
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