Should I keep my home when I file a Chapter 7 Bankruptcy?

Just the thought of losing one's home is often highly traumatic and emotional. People become attached to their homes. Their is the accomplishment of home ownership. Often a sizable down payment was made to purchase the residence as well as the outlay of significant money to maintain and improve the property. The home may in a desirable neighborhood or near quality schools.

But if the home is "upside down", that is, you owe more than what the home is worth, there comes a point when it may no longer make economic sense to remain in the home, especially if comparable rent is significantly less expensive than paying a mortgage.

Sometimes, people simply do not have the income necessary to maintain expensive mortgage payments and, at the same time, pay for their other necessities.

The aim of bankruptcy is to provide a financial “fresh start” for overburdened debtors. The goal is to set you free from debt bondage. On the one hand, sometimes the facts may indicate that keeping the property may be a wisest choice. However, part of receiving a fresh start for you might possibly include, in some cases, walking away from real estate property that is a greater burden than an asset or that is no longer a good investment. This is an issue that you need to pray about, seek godly counsel, and carefully consider.

For a free and confidential consultation, contact southern California bankruptcy attorney Matthew B. Tozer.

Should I keep my house if I file for bankruptcy?