Keeping Your Home in Bankruptcy
Depending on your income and debts, bankruptcy can actually help you stay in your home. While saving your house is possible with Chapter 7 bankruptcy, Chapter 13 (also known as reorganization bankruptcy) is normally a more advisable option when faced with foreclosure. How can you know which is right for you? It would be valuable to call a Marietta bankruptcy attorney from Cherney Law Firm LLC to go over your options, but the following information may help you prepare for that conversation.
Chapter 7 vs Chapter 13 When Facing Foreclosure
Chapter 7 can put a short pause on a foreclosure, providing temporary relief. In some events, that may be just enough time to get on your feet. In other cases, you may have still have to give up your house to pay off your debts. There is the chance that you may be able to stay even if you cannot pay off all your debts. If the property is not worth much money or is too much of a hassle to sell, the trustee may leave your property alone, and you might be able to stay. The normal course of Chapter 7 is that you will lose most of your debt, but you may have to give up your property to do so.
Keeping Your Home with Bankruptcy
With Chapter 13, you fully or partially pay back your debts from your own income, but you may be able to keep your home. If you qualify for Chapter 13, filing for bankruptcy can put a halt on the foreclosure process. This will usually give you 3 to 5 years and a repayment plan to get everything in order. This may enable you to get back on track with mortgage payments and get a handle on your debt.
The sooner you act on these issues, the better your chances are. A Marietta bankruptcy attorney can help you. Call our firm today to get started!