There are ways to keep your home in bankruptcy. “Automatic Stay” is one of the first advantages of bankruptcy, which will prevent creditors from taking collection action against you. If you are facing foreclosure, the filing of a bankruptcy petition will temporarily suspend the foreclosure action. While the automatic stay will not last forever, it will give you more time to review all of your options. Attorney Michael Blickensderfer of Blick Law Firm can help you review all of your options before deciding which type of bankruptcy is best for your situation.
Personal circumstances, such as the type of bankruptcy you file, the amount of equity in your home, and whether you own the house jointly with someone else are all factors to consider. In a Chapter 7 case, while you will lose assets but get rid of debts, you can either formally reaffirm the mortgage loan or, in some judicial districts, just keep making payments. If you fall behind on payments, and have some equity in your home, Chapter 13 bankruptcy may be a better choice for you because it allows you to pay off the arrearages (mortgage) over time and therefore face less risk to losing your home. A critical consideration in a Chapter 13 case is whether a debtor whose home loan is in default can make the larger mortgage payments (the missed payments plus resuming the original payments) over the repayment period.
For more information regarding keeping your home when filing for bankruptcy or general questions about qualifying for Chapter 7 and Chapter 13 bankruptcy call Blick Law Firm today at 813-931-0840.