San Jose Bankruptcy Attorney explains how you can keep your home during a bankruptcy.
San Jose Bankruptcy Attorney explains how you can keep your home during a bankruptcy.
Filing for bankruptcy no longer automatically means you will lose your home. It is possible to keep your home in a Chapter 7 bankruptcy filing, but far more likely in a Chapter 13 bankruptcy filing.
A Chapter 7 bankruptcy filing is a liquidation where all of your assets are sold and the proceeds used to pay off creditors. If you have equity in your home, it is likely that the mortgage holder will sell the property and use the proceeds to pay off creditors. However, if you owe more than the current value of the home and are current in your payments, it is possible that the mortgage holder will allow you to keep your home as long as you continue to remain current in your payments.
In a Chapter 13 bankruptcy filing, you are asking the court to allow you to make payments to the court, which takes your payments and disburses them to creditors. Chapter 13 is essentially an installment plan that will allow you to satisfy all of your debts within a three to five year time frame. If you stay current with your payments, it is possible for you to keep your home during a Chapter 13 bankruptcy. However, if you fall behind, you can trigger a reopening of your bankruptcy which would cancel the terms of your Chapter 13 bankruptcy filing.
One other note: Mortgage companies are far more amenable to a loan modification request after a bankruptcy filing than they are prior to the filing. It may be possible to keep your home and rework the terms of the loan with your lender. Your bankruptcy attorney can guide you through this process.
If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
