The most common question people ask when considering filing for bankruptcy is whether they will keep their house. Bankruptcy is a major financial decision that you should carefully think about and consider.
Luckily, in most cases, you do get to keep your home. However, in some, the government may seize your property, including your home, and use it for wage garnishment. This is why we have compiled this foreclosure guide on everything you must know about the impact of bankruptcy on your home.
Foreclosure Guide: How Bankruptcy Affects Your Home
Not everyone who is filing for bankruptcy can avoid foreclosure. Bankruptcy involves striking a balance between an individual’s financial position, how much money they owe, and what you can afford to pay in debts.
Hence, the court may decide to liquidate your assets, including your home, to repay your credits. However, this is not always the case.
The entire aim of bankruptcy is to ensure you don’t end up on the streets. In fact, this is exactly what Chapter 13 bankruptcy is all about; to protect your home. However, even if you file for Chapter 7 bankruptcy, you will likely avoid foreclosure. This is because all of your debts will be discharged, making it easier to pay your mortgage.
Life after bankruptcy is about starting fresh. It will be uncomfortable, and you will need to start rebuilding your credit and income. It also involves having a minimal level of living.
When you file for bankruptcy, the court halts the foreclosure process on your home. This does not mean that you get to keep the house, but rather, repayment of your debt plan is being determined by them.
How to Avoid Foreclosure During Bankruptcy
The best thing to do is hire a reliable and experienced debt relief service in Texas or wherever in your State. They can guide you on how to file a bankruptcy without losing your home.
Maintaining your mortgage payments is the best way to prevent losing your house in the case of bankruptcy. When you do this, your mortgage lenders will not have the option to foreclose.
Other than this, be sure to take guidance from a reliable attorney who can help you file for the right kind of bankruptcy where you can protect some of your important assets, including your home. Your home and car are assets that you need to get by, so chances are that you will be able to keep your home, but the court might seize your non-essential items, such as your luxury goods.
Final Word on Bankruptcy and Your Home
Worrying about your home when you are facing bankruptcy is natural. You need to pay an enormous amount of debt, and it might seem like your house may be used for its payment.
Luckily, at the Law Office of Joel Gonzalez, we can help you file for bankruptcy and keep your home.
We are the leading debt relief and foreclosure lawsuit firm in Corpus Christi. We have a range of professional Chapter 13 and Chapter 7 bankruptcy attorneys with years of experience that can review your options and steer you in the right direction.
Discuss your situation with us by getting in touch with our bankruptcy attorney Corpus Christi!
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