Can
I keep my house if I file for bankruptcy?
.
“Will I lose my home
if I file for bankruptcy?” Many people who file for
bankruptcy keep their homes. Filing for bankruptcy
protection is often what helped them keep their homes.
Chapter
7
bankruptcy can help avoid foreclosure. By
eliminating unsecured debts (for example, credit cards and
medical
bills), monthly expenses are reduced which can enable the homeowner
afford and pay the mortgage payments. But the amount of equity
(home value minus loans) in the house must be low enough so that the
home is exempt (protected) from
liquidation in a Chapter 7 bankruptcy. See California
Homestead Laws.
Chapter
13 bankruptcy
can give the homeowner time to catch up the missed mortgage payments
and stop the foreclosure
process. Further, certain unsecured debts can be reduced or
elimnated. Additionally, in certain limited circumstances, second trust
deeds or HELOC loans can be stripped down and, in many cases, reduced
significantly.
Supplementary
or Related Articles:
Should
I keep my home if I file for bankruptcy?
Loan
Modification and Short Sale in Relation to Bankruptcy Loan Modification versus Bankruptcy
What
is the effect of a bankruptcy discharge on secured
mortgage debt?
©
2009, 2010
ddd Disclaimer
Return to Bankruptcy FAQ
Return
to Christian Bankruptcy Attorney
|