You are overwhelmed and financial stressed by credit card and other debt. You are considering bankruptcy but nervous about how it will affect you in the future. The decision to file bankruptcy can be difficult and, if you are not familiar with bankruptcy rules, can be very overwhelming. You worked hard to be able to purchase a home. Now are wondering if you file bankruptcy, will you be able to keep that home that you have made memories in and worked so hard for.
The good news is that most people that declare bankruptcy do keep their homes. Exemptions vary from state to state. In Florida, there is a homestead exemption that protects your home from creditors when it meets certain requirements. Equity is also a factor. If the property has little to no equity, the trustee will not even pursue it as it is not considered an asset of the bankruptcy.
The two most common types of bankruptcy are Chapter 7 and Chapter 13. When filing a Chapter 7, and wanting to keep your house, you will need to be current on your mortgage payments at the time your bankruptcy is filed.
If you are behind on your mortgage payments, but still want to keep your house, you will probably want to file a Chapter 13. This will allow you to make your monthly mortgage payments as well as an additional monthly payment to pay the arrearage. You will need to show by your budget that you can afford to pay your mortgage. The trustee assigned to your case will need to see that your plan to keep current and cure the arrearage is feasible.
Many who file bankruptcy can eliminate all unsecured debt and not have to give up a thing. If you are considering filing bankruptcy, talk to an experienced bankruptcy attorney so that you can obtain financial freedom and keep your home.