Bankruptcy when you own a home

Bankruptcy and you home

What will happen to my home if I file for bankruptcy?

Most of the time when you are thinking about bankruptcy it comes at a stressful point in your life.  One of the principal worries is probably if you’ll be able to keep your home or not. This will depend on several factors including the type of bankruptcy you file. The good news is that with five different kind of bankruptcy there is usually one that will work for you so you can keep your home.  Most people will be able to qualify for ether a Chapter 7 or a Chapter 13 Bankruptcy.

The different types between a Chapter 7 bankruptcy and Chapter 13 bankruptcy can be significant and speaking with an experienced bankruptcy attorney is always advised for a number of reasons.  On reason is that here are different exemptions that will apply to your situation depending on where your currently live or may have lived in the past several years.  Generally speaking for the most part a Chapter 7 bankruptcy is more strict and has less flexibility than a Chapter 13 bankruptcy. The possible options on the debt repayment is usually broader in a Chapter 13, which will make it more likely for you to keep your home with a Chapter 13 case.

Don’t forget a Chapter 7 bankruptcy case however since there are still ways for people who file a Chapter 7 bankruptcy to keep their house, though. Creditors look at the equity of your house, which is the market value of your home minus your home equity loans and mortgages. If you don’t have equity, your house may be the type pf property that lenders will allow you to be able to keep your home. An experienced bankruptcy lawyer will be able to determine if you qualify for any type of exemptions that will make it more likely that you will be able to keep your home.  In Utah call us at 801-221-9911 to set up a free in office consultation about your possible case.

 

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