When filing for bankruptcy, the most common question you’ll hear is whether you’ll lose your assets.
This confusion stems from the common phrase regarding bankruptcy: “You can’t take it with you.” Bankruptcy law allows individuals to shed debt rather than give up their assets. Assets include not only cash and clothing but also houses and cars.
So, the next you’re wondering, “Can you file bankruptcy and keep your house?” the answer is yes, depending on a few factors. Let’s look at how your current homeownership affects your ability to file for bankruptcy.
Explore the Different Bankruptcy Filings
Filing bankruptcy does not have to mean giving up your home. There are many measures homeowners can take to keep their house, depending on the type of bankruptcy they are filing. Homeowners can still file for bankruptcy and keep my house and car if they can afford to make regular payments on their mortgage.
Chapter 7
In Chapter 7, filers are usually required to liquidate certain assets to repay creditors. These assets may include real estate property. However, if you have a home or other real property, there are certain exemptions available under which you may protect it from being liquidated.
Additionally, if you can demonstrate that you can keep up with mortgage payments, you can reorganize your debt to keep your home. Filing for bankruptcy and mortgage does not necessarily mean losing your home.
Chapter 13
Chapter 13 is a form of bankruptcy that allows you to reorganize your finances to pay off your debts. You must enable the court to review your income, debts, and other financial obligations. You will create a repayment plan that works for you and the creditors.
During the repayment period of three to five years, you will remain in control of your house and continue making mortgage payments. The remaining debt is often discharged at the end of the repayment period.
Check with Chapter 13 bankruptcy lawyers to help you. Filing for bankruptcy and restructuring debt is usually much faster than other bankruptcies, allowing you to keep your home while reducing your total debt.
The Different Types of Bankruptcy Affecting Homeowners
Regarding homeownership and bankruptcy, different types will affect how you can keep your house. Depending on the type of bankruptcy, options are available to help you keep your home.
Even if you lose your house due to bankruptcy, certain states offer exemptions allowing you to save some equity. However, this could vary depending on your state’s laws.
Overall, filing bankruptcy and keeping your assets is difficult, so understand the process and its effects on homeowners before deciding to pursue it.
Can You File Bankruptcy and Keep Your House
Can You File Bankruptcy and Keep Your House? Bankruptcy and homeownership are complex. However, with knowledge of the law, and the guidance of an experienced attorney, it can be possible to keep your house.
Taking the proper steps now will give you peace of mind for the years ahead. If you need assistance in understanding and navigating the bankruptcy process, contact an experienced attorney today.
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