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Foreclosure

Will I Lose My Home if I File for Bankruptcy?

The short answer to this question is no, you will not lose your house

There is no requirement in the Federal Bankruptcy Code that requires you to surrender your home. How relevant your home is in a Bankruptcy proceeding depends on the chapter of Bankruptcy that you file.

Chapter 13 Bankruptcy

Filing a Chapter 13 Bankruptcy can do a number of helpful things; regarding your home, you can stop a foreclosure proceeding and/or bring all of your mortgage arrears current through the Chapter 13 Plan that you, your attorney, and the Chapter 13 Trustee agree upon.

With a Chapter 13 Bankruptcy Plan, you will be making a monthly payment to a Trustee. This payment will include any past due amounts owed to your mortgage company. You must also continue making your regular mortgage payment and keep your ongoing mortgage payments current. It is important to make your Trustee payments for the entire duration of your plan (usually 3-5 years) and to not miss any of your regular monthly mortgage payments.

Chapter 7 Bankruptcy

Filing a Chapter 7 Bankruptcy only puts your home at risk if you are delinquent on the payment to the mortgage company and/or there is equity in your home. In a Bankruptcy proceeding, there is only equity if your home’s value exceeds the amount owed, plus your allowable exemptions. The exemptions are specific to the state in which you file. If your home is not exempt, then it can be sold by the Chapter 7 Trustee. The money made from this sale is used to pay your creditors.

A qualified Bankruptcy attorney will determine all of the necessary qualifications for you, and make sure that your case proceeds smoothly.

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? Continue Reading

Discharging Debt Through Bankruptcy

Filing bankruptcy has specific advantages. Discharging debt is one of the main benefits. In simple terms, a discharge eliminates a person’s responsibility to pay back their debt. A person can receive a discharge in both a Chapter 13 and Chapter 7 bankruptcy. It is important to know that not all debts can be discharged in bankruptcy. Continue Reading

Predatory Lending: Your Rights

Federal law protects consumers from illegal mortgage lending practices. In 2010, as part of the Dodd-Frank Act, the federal government created The Consumer Financial Protection Bureau. The Consumer Financial Protection Bureau was given the task of protecting consumers from predatory lending, and other potentially misleading practices engaged in by banks and other lenders. If you believe that you have been a victim of predatory lending, you can report your concerns to the Consumer Financial Protection Bureau. Continue Reading