Our Schaumburg Bankruptcy Attorneys Can Give You Options for Your Home in Bankruptcy

A popular bankruptcy myth is that if you file for bankruptcy, you will lose your house no matter what. This is simply not true. While bankruptcy does allow you the option of surrendering your home if you no longer want it or can no longer afford it, you can also choose to keep your home in bankruptcy and continue to pay your mortgage. A Schaumburg bankruptcy attorney at U.S. Law Attorneys, Ltd. can help you choose which option is best for you.

What Are My Choices for My Home in Bankruptcy?

You generally have three choices in a consumer bankruptcy when it comes to your home, and they  all have pros and cons, as well as different things to consider:

• Keep it in Chapter 13 bankruptcy. A Chapter 13 bankruptcy allows you to propose a repayment plan in which you will pay all your creditors in different ways. If you are behind on your house but you can afford to make the payments, a Chapter 13 is an excellent way to catch up on your mortgage arrears and back property taxes while protecting your home from foreclosure. If you file a Chapter 13 bankruptcy before the foreclosure sale occurs, you can propose to pay your past due payments over time in addition to your regular monthly payment. As long as you follow the terms of the plan, the mortgage lender cannot foreclose, and at the end of a successful Chapter 13 case, you will be caught up on your house payments.
• Reaffirm the debt in Chapter 7 bankruptcy. If you file Chapter 7 bankruptcy, you can still keep your house if you can show the court that you can afford the monthly payment and that you are current on the payments. Even if you are behind on your house when you file, a Chapter 7 bankruptcy will not prevent you from seeking a loan modification or other methods of saving your home. Talk to our Schaumburg bankruptcy attorneys for more information.
• Surrender the home. If your home has simply become too much of an expense and you want to move on, you can choose to surrender your home in either Chapter 7 or Chapter 13. Any discharged portion of your mortgage will be discharged without tax liability, and you simply walk away. This is also known as a Strategic Default.

Filing for bankruptcy does not mean the end of home ownership. If you are in dire financial troubles but you are worried about losing your home if you file for bankruptcy, contact our Schaumburg bankruptcy lawyers right away for a free consultation. If you are behind on your payments, act now before a foreclosure sale occurs. You deserve to get your life back – call today.