31 Aug Will I Lose My House If I File Bankruptcy?
Whether or not you will be able to keep a house after filing for bankruptcy will depend on several factors.
Are you current on the mortgage?
If you are current on the mortgage you can continue to pay the secured debt in a Chapter 7 bankruptcy while getting rid of your unsecured debt such as credit card debts?
The specific procedures for keeping a house in a Chapter 7 bankruptcy are addressed in detail by Connecticut Bankruptcy Lawyer Eugene Melchionne.
But what if you are you behind on the mortgage?
There are two basic options.
If you are behind on your mortgage and want to keep your house, then you may want to file for a Chapter 13 bankruptcy.
A Chapter 13 bankruptcy allows you to pay the amount overdue on the mortgage, known as an arrearage, over a period of time, usually 3 to 5 years. For more information on Chapter 13 bankruptcy see Peter Orville’s article about how a Chapter 13 bankruptcy works.
If you are behind on your mortgage and don’t want to keep the house, then you can surrender the house to the creditor in a Chapter 7 bankruptcy.
The decision on whether to keep a house is one that should be made only after consulting with an experienced bankruptcy attorney like the ones found here on the Bankruptcy Law Network.
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