Keeping Your House In Bankruptcy

: Chris Lee Law Firm

  Filed under: Mortgage

foreclosureOne of the biggest reasons people file for bankruptcy is to protect their assets from creditors, especially a home. The bankruptcy process can stop a foreclosure and allow the debtor time to resolve their mortgage debts, but there are some additional considerations.

Resolving Mortgage Debts

The first point to consider is the type of bankruptcy case that is filed. While a Chapter 7 case may be able to eliminate much of one’s unsecured debts, secured debts like a mortgage are more challenging. In most cases, keeping a home in bankruptcy will require repayment of the mortgage debt and delinquent payments. Although some debtors may be able to exempt their property from liquidation in Chapter 7 through bankruptcy exemption laws, this will not apply to everyone and there is no guarantee a home will be considered exempt.  Whenever possible, it is a safer bet to resolve mortgage debts in Chapter 13.

It is also important to consider the nature of mortgage debt repayment. When developing a repayment plan in Chapter 13 it is of utmost importance to consider one’s budget. The worst thing that a debtor can do at this point is to obtain an approved repayment plan and default on that plan. Maintaining the repayment plan as outlined is important to the success of the case. Failing to maintain the payment plan can lead to the dismissal of the case and the removal of foreclosure protection against the home.

Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information