Financial stress is bad enough without wondering if you might lose your home. The questions swirl around in your brain – do I qualify for bankruptcy? Will I lose my house in a bankruptcy? Can I save my house? A Chapter 13 bankruptcy, if you qualify, can help you save your home – here are answers to your questions.
Do I Qualify for Bankruptcy?
Qualification for bankruptcy is based on a set of requirements that determine your eligibility or ineligibility. While you can take a look at what requirements must be met, it’s a good idea to also talk to an attorney who specializes in bankruptcy, as he or she can carefully look at your specific situation.
To qualify for Chapter 13 bankruptcy, you must show that you have enough income to fulfill your repayment plan. This income is what is left over after expenses and required payments on secured debts. Your debts must also not be too high, both for secured and unsecured debts.
Your income tax filings must also be up to date to qualify for a Chapter 13 bankruptcy.
If you are wondering if you qualify for this type of bankruptcy, you must take a close and careful look at your financial situation, and discuss your scenario with your attorney. If you do not qualify there may be other options available to you, which your lawyer can also help determine.
Will I Lose My House in a Bankruptcy?
This depends on what type of bankruptcy filing you make. With a Chapter 7 bankruptcy certain non-exempt assets are liquidated. If your house’s equity is below the state exemptions, you will not loose your home unless you are behind on payments. With a Chapter 13 bankruptcy, however, it is possible to halt foreclosure proceedings and catch up on delinquent mortgage payments over the course of your payment plan.
There is no guarantee that you will not lose your home, and your bankruptcy lawyer is available to help you understand the options you have and how best to proceed.
Can I Save My House?
If you qualify for a Chapter 13 bankruptcy, it’s possible. Talk to your attorney about starting Chapter 13 bankruptcy proceedings so you can stall a foreclosure and keep your home. It is important to follow all of the appropriate rules and meet deadlines, so work closely with your attorney for best results.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.