Can I Keep My Home After Bankruptcy?
One of the most common questions that bankruptcy lawyers are asked is “Can I keep my house?” The answer in the majority of cases is “Yes”. There are stipulations, however. For example, in many states you cannot have more than $125,000 in equity in the home. The laws do vary by state so it’s important to get advice from someone with experience.
An experienced bankruptcy attorney will be able to explain the requirements to allow you to keep your home. The important thing to remember is that you have rights as an American, but you have to defend those rights. Your mortgage company is looking out for its best interests. You should do the same. The first step to doing that is to hire someone who knows the law.
One of the most common requirements to filing bankruptcy and still keeping your home is that you are able to maintain the mortgage payments. If you cannot show proof that you are financially capable of paying the monthly payment, then yes you will of course be at risk of losing your home.
There are ways to lower the mortgage payment and make it more manageable, but this can also be complicated and it depends on the laws in your area.
Both Chapter 13 and Chapter 7 bankruptcy filings allow you to remove bad debt while still maintaining a home and your vehicle. If you have a second home, vacation home or rental property other than your main residence then you’ll likely have to show proof of zero equity in it in order to keep it. In the majority of cases 8% is deducted from the fair market value and after that, if equity is shown then the home can be taken and sold to help cover your debt.
If you have questions about bankruptcy and keeping your home, call 1-800-BANKRUPT from anywhere in the Chicago area today and set up a totally free consultation and get the valuable advice from an experienced attorney you need for free!
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