Can I Keep My Home In Bankruptcy?
Written by Myrtle Beach Bankruptcy Lawyer, Allen Jeffcoat
In my Myrtle Beach bankruptcy practice I often talk to clients who are considering bankruptcy, but who are concerned about losing their home if they file bankruptcy. Many times they are worried that with all the money going out the door for living expenses, well as for non-mortgage debts like credit cards, with their limited cash reserves they may be unable to keep their homes.
In a chapter 7 bankruptcy, if your income is enough to cover basic living expenses plus the required mortgage payments, but your income isn’t enough to also pay credit cards, unsecured loans and the like, the result of the bankruptcy filing is to wipe out the non-mortgage debts completely, thus freeing up household income to devote entirely to keeping the mortgage current and paying living expenses. This is harder to do if you have let the mortgage payments get behind, because in a chapter 7 bankruptcy the mortgage lender can ask the bankruptcy court for permission to foreclose if the monthly payments are in arrears. But there is as solution to this problem as well – Chapter 13 bankruptcy.
In a chapter 13 bankruptcy, you can catch up arrearages on your home mortgage over as long as 60 months, so long as you can also keep paying your regular mortgage payments. This is often the difference between keeping you home and losing it.
But don’t delay in seeking competent help. Sometimes bankruptcy planning, done carefully and promptly, can make all the difference for you and your family.
If you have financial problems, don’t wait to see a bankruptcy lawyer. Get help immediately to learn about all your options.