Declaring bankruptcy is a monumental decision that comes at a stressful
and overwhelming time in your life. One factor that frequently adds to
the stress is uncertainty whether or not you can keep your most important
asset and investment: your home. If you are stressing about this, good
news! You may be able to keep your home, depending on a few factors. You
should seek guidance from an experienced Kent County bankruptcy attorney
throughout the process to make sure that your home remains protected and
you adhere to the requirements necessary.
How to Keep Your Home.
Whether or not you can keep your home depends largely on three factors:
the type of bankruptcy you file, how much equity you have in your home,
and whether you can afford your mortgage payments. Chapter 7 and chapter
13 bankruptcy have different laws regarding exemptions that you are entitled
to. Generally, chapter 13 bankruptcy gives you greater exemption allowances,
but has a much stricter criteria for qualification, including an income
test. Chapter 7 is easier for more people to qualify for, but has fewer
But rest easy, Chapter 7 filers can still keep their home. Chapter 7 bankruptcy
trustees only consider the equity you have in your house (the value of
your home minus the amount you owe on your mortgage). If you are like
many Chapter 7 filers, you likely have very little equity in your home,
which you can exempt and prevent your home from being sold off or foreclosed
on. However, if you have a lot of equity in your home, you may not be
able to exempt it all and be forced to sell your home to pay off your debts.
The final factor is whether or not you can afford your mortgage payments.
Being able to keep your home throughout the bankruptcy process is one
thing, but will you be able to afford your mortgage payment after the
bankruptcy process completes? If you will be able to afford your mortgage
payments easily after you are free from the rest of your debt, then you
will be allowed to keep your home. However, if you still would not be
able to afford your mortgage payment, then the bank may eventually foreclose
on your home and you won’t be able to keep it.
You should carefully consider whether or not you wish to keep your home
when filing bankruptcy, which means you should discuss your options thoroughly
with an attorney from the
Law Office of Steven J. Hart. Attorney Hart has helped numerous clients through the bankruptcy process,
and can provide you with trustworthy, professional counsel for your financial
situation. Attorney Hart wishes to see you succeed and regain financial
independence, and does everything he can to guide you towards a more secure
If you are considering filing bankruptcy, discuss your case further by
calling the Law Office of Steven J. Hart at 888.701.0919 and scheduling a