Many people struggle for years to pay bills they cannot afford because they think they will lose their home if they file for bankruptcy protection. If you are current on your mortgage payments, you may be able to keep your home even if you file for Chapter 7 bankruptcy. A Bankruptcy Attorney can assess your situation and help you determine which option is best in your situation based on the amount of equity you have in your home.
Homeowners who have a substantial amount of equity may have to forfeit their property to the bankruptcy trustee to be sold so the trustee can pay off creditors. In most cases, though, homeowners do not have enough equity after homestead exemptions are applied to make it worthwhile for the trustee to sell your home. If the trustee cannot make a profit on the sale of your home after giving you the homestead exemption, paying off the lien holders and taking their own commission, you will get to keep your house.
Filing for Chapter 7 bankruptcy will not prevent the lender from foreclosing on your home if you are behind on your mortgage payments. Your lender may even petition the court to have the automatic stay lifted so they can foreclose on the property. Whether or not the stay is lifted for your mortgage company, you will only have a limited amount of time in your home after you file for bankruptcy before the lender goes through with the foreclosure.
Homeowners who are behind on mortgage payments but want to keep their home may find that Chapter 13 bankruptcy is a better option. Your Bankruptcy Attorney In Wetumpka, AL can help you explore your options and decide how important keeping your home is to you. In many cases, a person who files under Chapter 7 can re-establish credit and become eligible for a new mortgage just a few years after their bankruptcy is discharged.
The rules regarding bankruptcy are complex. Before making a decision, schedule a consultation with an attorney who focuses on helping people who need assistance dealing with their debt.
