When people file for bankruptcy, they are often worried about whether or not they can keep their home. Whether or not you can keep your home depends on various factors, such as the type of bankruptcy you choose, your home's equity, and whether you can afford to keep up with the mortgage.
Most people who file for bankruptcy are usually able to keep their home - as long as you agree to pay for it and then actually do pay for it. At Martin Attorneys, PA, we are committed to helping our clients keep their properties if they want to, and will work with you to find the best possible solution for your debts.
We discuss more in detail below.
Which Bankruptcy Are You Filing?
If you file for Chapter 7 and are current with your mortgage, you can continue making these payments without the risk of losing your home. However, if you are behind on your mortgage and want to keep the house, you will need to work with the bank to see if they are willing to modify your loan, or consider filing for Chapter 13.
If you file for Chapter 13 and have enough income to continue your mortgage payments, you can keep your home. Chapter 13 also allows you to catch up on past due mortgage debts by reorganizing them into a monthly payment plan.
Is Your Home's Equity Protected by Exemptions?
Each state has homestead exemptions that allow you to protect your home in a bankruptcy. If the equity in your home is less than the state or federal exemption (Arkansas allows you to choose either one), you can exempt your home from sale in a bankruptcy.
Can You Keep Up with the Mortgage?
The bottom line is, if you are able to keep up with your mortgage and continue to do so, you should not be concerned about losing your home in a bankruptcy.
For more information about filing for bankruptcy and what you can keep, contact our experienced attorneys for guidance.