In this article we’ll answer a common question asked can I file bankruptcy and keep my house? First, bankruptcy won’t wipe out your mortgage. Your house will still be a secured asset, and bankruptcy will keep your mortgage out. However, if you have a second mortgage, your bankruptcy may wipe out your second mortgage. This is why it’s so important to file for bankruptcy early.
Bankruptcy exemptions can help you keep your home, even if you owe more than the exemption. You can use bankruptcy exemptions to protect more than $50,000 of your home’s value. However, you must be current on your mortgage payments to qualify. If you move within the last two years, you must also meet additional residency requirements before you can qualify for a bankruptcy exemption.
A bankruptcy trustee may not sell assets that are not exempt, even if the value is more than the exemption. This may make it difficult to pay creditors unless you have more equity in your home than the exemption. You should also be aware of your state’s exemption rules because they vary by state.
Bankruptcy Chapter 7 & 13
If you’re worried about losing your home, you may be wondering how to file for Chapter 13 bankruptcy and keep your house. While it is possible to file for bankruptcy, this option isn’t always the best choice for every homeowner. For one thing, bankruptcy repayment plans are based on disposable income, not assets. This means that you must have a steady income stream to pay back your creditors.
If you have sufficient income to pay off your creditors, you may want to file for Chapter 13 bankruptcy. This type of bankruptcy prevents you from losing your house and prevents creditors from taking legal action against you. It also requires you to pay back your debts from your “disposable income,” which is determined by the trustee.
One of the benefits of filing for Chapter 7 bankruptcy is that you can keep your house even after you’ve filed for bankruptcy. However, you must ensure that the balance on your mortgage is less than the protected amount to qualify. It is also important that you keep up with your mortgage payments to avoid losing your home.
Chapter 7 bankruptcy can allow you to keep your house while making payments on other debts. This is possible if you use the property as collateral for a loan. However, if you’re still behind on payments, the creditor may ask you to reaffirm the debt. If you agree to do this, you’ll have to get the approval of the bankruptcy court. Additionally, you can’t file Chapter 7 more than once every eight years and you cannot file with a co-signer.
While bankruptcy can provide a fresh start by erasing many of your debts, it can also lead to the loss of your home. To file for bankruptcy and keep your house, you must be able to prove that you cannot afford to pay your mortgage and that you have attempted to work out a payment plan with your lender. If you meet these requirements, you may be able to file for Chapter 13 bankruptcy and keep your home.
