Protecting Your Most Valuable Asset During Bankruptcy

Filing for bankruptcy is something that many Americans face every year. Debt is difficult to overcome for people because the cost of our monthly bills quickly adds up. This leaves us scrambling to pay for everything and sometimes we cannot. When this happens, bankruptcy is something that we consider. However, we are also often scared of filing for bankruptcy because we simply do not have much knowledge about the process. We want to keep our most valuable asset: our home, while also reaping the financial benefits bankruptcy can provide. The fear of losing our home can prevent us from filing for bankruptcy. Below, we will discuss how you can keep your home while filing for bankruptcy.

Understand Your Bankruptcy Options: The most important thing that you can do is understand your bankruptcy options. The two most common bankruptcy options: Chapter 7 and Chapter 13 bankruptcy. Chapter 7 involves the liquidation of your assets to repay your creditors, while Chapter 13 involves the restructuring of debt. If you want to keep your home, Chapter 13 is the better option for you. It allows you to restructure your mortgage payments and avoid foreclosure.

Consult with a Bankruptcy Attorney: The bankruptcy process is stressful and complex. We always recommend that you consult with a bankruptcy attorney who specializes in property foreclosure. They have a deep understanding of bankruptcy law and how real estate is affected by it. Your attorney can then discuss your financial situation, evaluate your options, and develop a strategy that keeps you in your home.

Stay Current on Mortgage Payments: The best thing that you can do is to keep up with your current mortgage payment while going through bankruptcy. If you fall behind on your payments, your lender may seek permission from the court to proceed with foreclosure. So, create a monthly budget and prioritize your mortgage payments.

Explore Loan Modification or Refinancing Options: Struggling to keep up with monthly mortgage payments? Then it may be time to explore loan modification or refinancing options. These options can help you find more favorable and affordable mortgage terms. Talk with a mortgage specialist to understand the options that are available to you and determine if any are viable for you.