If you are considering filing for bankruptcy, you will have many questions. Will bankruptcy offer you relief from your debt? Will you lose everything in the process? With many people today relying on their home as the space where they work, where their children learn and where they spend most of their time, one question has become increasingly important: what will happen to their house if they file for bankruptcy?
What type of bankruptcy will you file?
Because of the different ways that Chapter 7 and Chapter 13 bankruptcy handle your debts, they may handle your home differently as well. In Chapter 7 bankruptcy, a portion of your home’s equity may be exempt from the bankruptcy process.
Chapter 13 bankruptcy involves reorganizing your debt repayment schedule, and this could help you catch up on your mortgage payments. Relieving the burden of other debts may also make it easier for you to make your mortgage payments in the future.
Are you facing foreclosure?
If you are at immediate risk of losing your home, an automatic stay may delay foreclosure. This can give you immediate relief from your worries about losing your home while you go through the bankruptcy process.
Keeping your home could depend on exploring all the options available to you.
Because so much of the bankruptcy process depends on the particulars of your situation, it can be important to discuss the process with an experienced attorney. They can help you determine which bankruptcy option is right for you and help you create a strategy that protects what matters most.