The home you purchased is one you worked hard for. You have been living there for years, and you want to remain in it for years to come. Your children are growing up here, and you couldn’t ask for a better location.
Unfortunately, when you lost your job, you found that it was nearly impossible to make your mortgage payments on time. You have many other bills to cover, and there simply isn’t enough money to go around, even with unemployment coverage. You think it’s about time to consider bankruptcy, but you’re worried that you’ll lose your home in the process.
Will you lose your home in a bankruptcy?
One great thing about bankruptcy is that it can generally stop the risk of foreclosure. You may be able to have enough debts eliminated or reduced to be able to pay what you owe on time and to keep your home.
For example, if you choose a Chapter 13 bankruptcy, you may have lower debt payments each month, which will help you afford to pay your mortgage on time. It’s even possible that you could have a second mortgage lien stripped and discharged in some cases. With Chapter 7 bankruptcy, you may have credit debt discharged or other debts eliminated, giving you enough money left over to cover your mortgage and keep your home.
With bankruptcy, there are typically homestead exemptions that help protect your investment. The goal is never to make you start over. Bankruptcy is designed to help you.
Every person’s bankruptcy is different because everyone’s financial situation is different. Our website has more information on the steps to take next so that you can get the support you need to get out of this financial crisis.