Blog > 2022 > January > Can You Lose Your Home After Filing for Bankruptcy?
Are you drowning in credit card debt, but you’re afraid you can lose your home after filing for bankruptcy?
These days, there’s a lot of misinformation out there. Unfortunately, one of the things many people are most confused by is bankruptcy. Namely, people assume that filing for bankruptcy automatically means you’ll lose your home. This isn’t true.
Below, we’ll explain why it’s not true and why bankruptcy might be the perfect solution for you if you have a lot of credit card debt and financial woes.
If you file for bankruptcy to get rid of your credit card debt, in all likelihood, you will not lose your home. Saying that it’s a sure thing that bankruptcy equals home loss is not valid.
Of course, there are exceptions to this. For example, homeowners in foreclosure or those behind on their payments may be at risk of losing their homes. Likewise, suppose you know you’ll continue to have trouble making your house payments after bankruptcy. In that case, this may hinder your ability to keep your home.
Finally, if you have a lot of equity in your home (if you’ve already paid a lot on it), it may be more difficult to protect this asset.
In some cases, keeping your home during bankruptcy is a matter of deciding between Chapter 7 and Chapter 13 bankruptcy. For instance, if you have a lot of equity in your home, you will probably want to file for Chapter 13 bankruptcy instead of Chapter 7 bankruptcy.
In general, filing for bankruptcy is meant to help you regain a solid financial foothold. Therefore, bankruptcy laws aim to keep property that helps you maintain your home and your job. Naturally, this would include your actual house.
Knowing whether you’ll be able to keep your home after filing for bankruptcy is essential. For some homeowners, it may differentiate between filing and not filing. The best way to figure this out and learn what financial route is best for you and your family, in general, is to hire a bankruptcy attorney.
Many factors go into filing a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, and one of those happens to be your attorney. A reasonable bankruptcy attorney will fight hard for you to keep your home while getting rid of your debt at the same time.
If you would like more information about how to file for bankruptcy and protect your home, please give SM Law Group, APC, a call today for a free consultation.
We would be happy to sit down with you to discuss your legal options and decide whether bankruptcy is the right choice for you.
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