Keeping your house after filing for chapter 7 bankruptcy can be one of the biggest decisions you have to make when you are financially troubled. In this article, we will discuss some of the options you have if you want to keep your house after filing for bankruptcy. Keep in mind that hiring the best bankruptcy attorney is a must if you want to succeed in your bankruptcy case.
Do You Want to Keep It?
First thing you will have to consider is whether you desire staying in your current house or not. For example, if you have a huge debt that needs to be repaid, or you are suffering from abnormally high interest rates in your house mortgage, Or your house needs expensive repairs, you might be better off selling the house in your bankruptcy and buying it after bankruptcy discharge. Usually, bankruptcy laws are lenient enough to allow you to keep your house if you want to when filing for a chapter 7 bankruptcy.
Are You Making Mortgage Payments?
The second most important thing to consider is whether you are current on your mortgage payments or not. If you are behind on payments, your lender might ask you to re-pay the late payments right away, or might ask the court to start a foreclosure.
If this is the case with you, you should immediately consult a bankruptcy lawyer To see whether you should repay all the late payments On your mortgage, or you should consider filing for a chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to keep your house even if you are behind on payments, and provides you with 3 to 5 years time period to repay the remaining payments.
Additionally, the trustee might also consider your equity in the house when you are filing for bankruptcy. But we can safely conclude that you can probably keep your house when filing for bankruptcy if you want to.