Many people have concerns about what can happen when you file for bankruptcy. In most cases, bankruptcy is the last viable option, and you should attempt to remedy the issue in several other ways before filing. However, if bankruptcy is your only option, and you have exhausted all others, you need to consult an attorney. There are ways to keep your home if you file for bankruptcy, but you should take great care to follow all of the laws and ensure it is done correctly for the best possible results.

What are the Stipulations to Keep my Home?shutters-669296_1280

There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Each have different stipulations for keeping your home. In Chapter 7 bankruptcy, to keep your home you must meet two qualifications. The first of these is to prove that the equity in the home is exempt. This means that the equity is not available to pay the claims of creditors. To determine if the property is exempt, an attorney will be needed. If you do discover that the property is exempt, the next stipulation is that you continue making payments. If you can feasibly make payments on the home, you can keep it.

What if the Home Is not Exempt?

If the home is not exempt, you still have one more option. Chapter 13 bankruptcy is more of a payment plan than an automatic removal of all debts. This is a better option if you are behind on your mortgage payments, and you can now continue making them to keep the home. When it comes to home mortgages, a secured creditor would rather you continue making payments on the home than lose the home. A foreclosure is not profitable for a lender so they may be more likely to work with you. However, when it comes to bankruptcy and Chapter 13, you should ask whether or not it makes sense to keep the home. There are many reasons why it could not make sense to keep the home, and you should evaluate these with your family. Consult a lawyer if you need professional advice on the subject.

Contact an Attorney

Once you have decided to file for bankruptcy and are interested in keeping your home, it is best to contact an attorney for assistance. You will want to ensure that everything is completed correctly so you can keep your home in the end. If you are facing foreclosure, call a bankruptcy lawyer in Atlanta for assistance and explore your options.

Image Courtesy of