Did you know that you can file for bankruptcy and keep your mortgage? It seems a lot of people who are considering bankruptcy are not aware of this fact. While bankruptcy laws vary from state to state, you can almost always hang onto your mortgage if the circumstances are right.
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When you file for bankruptcy, it’s highly unlikely that you will lose your house to foreclosure. The bankruptcy courts are designed to offer you protection from undue hardship, not to make you homeless. If you are able to continue making payments on your mortgage, then you can keep your home!
Of course, keeping your home is contingent upon staying on top of those payments! If you don’t make payments, you could have your home foreclosed on. The fear of losing a home is enough to prevent many people from filing for bankruptcy. However, filing for bankruptcy might even help you keep your home!
When you file for bankruptcy, you receive relief. You no longer are responsible for repaying various loans or lines of credit. If you’re employed, this is great news! (It’s still good if you’re unemployed!) You can now use your income to pay your mortgage, rather than that credit card bill that was drowning you.
Bankruptcy can be a blessing for many homeowners. Instead of putting your money toward a debt with no benefits, you can put your money into a mortgage, and provide yourself and your family with a roof over your heads! Just make sure you stay current with your payments!