If you file for bankruptcy can you keep your home?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If you file for bankruptcy can you keep your home?
I tried working with a debt solution company and my credit card companies wouldn’t work with them. Now bankruptcy seems to be my only option. I am about 2 months behind on my 2nd mortgage. If I file bankruptcy will I lose my home? I can’t lose my home.
Asked on August 11, 2010 under Bankruptcy Law, Arizona
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
It depends on the type of bankruptcy that you file. In a Chapter 7, you will lose assets but get rid of debts. However, you can either "reaffirm" your mortgage loan (legally obligating yourself to repay the loan) or, possibly not have to reaffirm and just keep making the payments. If your home equity is larger than the state's homestead exemption, Chapter 7 is not the choice since you would probably lose your home. If you fall behind on payments, and have some equity in your home, Chapter 13 bankruptcy may be a better choice for you because it allows you to pay off the mortgage the missed payments over time and therefore face less risk to losing your home to the trustee. However, a major factor in a Chapter 13 is whether a debtor, whose home loan is in default, can make the larger payments (there are late fees, etc).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.