Protecting Your Home When Filing for Bankruptcy

Foreclosure Defense Lawyer

One of the biggest fears those considering bankruptcy face, is the worry that they will lose their home should they determine that bankruptcy is right for them. Facing the loss of some of your assets can be challenging to come to terms with. This is a primary reason it’s so important to make sure that you access the experience a lawyer has to offer clients. They will work with you to determine how best to manage your case, especially which form of bankruptcy you should file for in efforts to help you retain as much of your assets as possible.

Chapter 7 Bankruptcy

Having the ability to keep your home should you file for Chapter 7 bankruptcy will be reliant upon whether you have stayed current on your mortgage payments. This will help when attempting to retain your home when filing for bankruptcy. Your attorney will take a look at bankruptcy exemptions and eligibility regarding your home equity within the state you reside. Very few states will allow you to keep your home’s entire equity. In most cases, there is a limitation to the equity that you may be exempt for. The equity in your home amounts to far more than the maximum exemption you are able to take. If this is the case, the trustee that has been appointed by the court may make the decision to sell your home. This will be in efforts to utilize the proceeds to pay off as much of your debts as possible. Essentially retaining your home will require two key factors:

  1. Your equity should not be valued higher than the maximum exemptions
  2. You must be current on your mortgage payments and have the ability to maintain your payments in the future.

Although Chapter 7 bankruptcy has the ability to provide debtors with a number of advantages, it’s not the right decision for everyone. This is the primary reason why it’s key to consult with us so that we can help you make decisions that are in your best interest.

Chapter 13 Bankruptcy

If you are a bit behind on your mortgage payments, you may be able to file for Chapter 13 bankruptcy. However, you will need to have the ability to catch up with them within a reasonable timeframe. Chapter 13 can take longer before it is finally resolved because you will enter into a repayment plan that occurs over the course of 3-5 years. Chapter 13 does allow you to retain your property, making it a more attractive option for some. Instead of being required to sell your home to pay off debts, you will include the non-exempt portion of your equity within your repayment plan. However, it’s important to note that in order to do so, you will need to have enough income available in order to be able to do this.

The Advantages of a Lawyer

Law services can provide you with the upper hand when it comes to your bankruptcy filing. They will work closely with you to review your financial situation in efforts to help you make the most informed decision regarding your filing. A Lawyer’s services can help:

  • You understand the process of filing for bankruptcy
  • Determine the best form of bankruptcy to take
  • Ensure that the proper documentation is gathered and filed with the court
  • Manage complications or the unexpected
  • Provide you with the counsel you need

Bankruptcy proceedings don’t have to be stressful. Facing bankruptcy can help to provide you with the help you are looking for. Chances are, you have been struggling to manage your finances for some time. Contact a law firm today so that they may represent you in the way that you deserve.

Source: Foreclosure Defense Lawyer Tampa, FL, Law Office of Michael A. Ziegler, P.L.

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