Foreclosure

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one’s home. Your home is not just a place to live. It’s also a valuable asset and source of stability. For most people, protecting their home is a top priority when filing.

How can a bankruptcy attorney help you protect your home when you file for bankruptcy? Here’s what you need to know.

Understanding Bankruptcy and Your Home

Before delving into the role of a bankruptcy attorney, it’s essential to understand how bankruptcy affects your home.

In a Chapter 7 bankruptcy, also known as liquidation bankruptcy, nonexempt assets may be sold to repay creditors. However, most states offer exemptions that protect certain assets, including your primary residence, up to a certain value.

In a Chapter 13 bankruptcy, also known as reorganization bankruptcy, you can create a repayment plan to catch up on missed mortgage payments and other debts over a three to five-year period. This can provide an opportunity to keep your home while addressing your financial obligations.

How a Bankruptcy Attorney Can Help

There are several ways a bankruptcy attorney can help you. For example:

Assessing Your Situation

A bankruptcy attorney will thoroughly assess your financial situation, including your assets, liabilities, and income. They can help you understand which type of bankruptcy is best suited to your circumstances and whether your home is at risk of being sold in a Chapter 7 bankruptcy.

Determining Exemptions

State and federal bankruptcy laws provide exemptions that protect certain types of property, including your home, from being sold to repay creditors. A bankruptcy attorney will help you determine which exemptions apply to your situation and maximize the protection of your home.

Negotiating with Creditors

In a Chapter 13 bankruptcy, your attorney can negotiate with creditors to modify your mortgage terms and create a manageable repayment plan that allows you to keep your home. They can also advocate on your behalf to address any disputes or challenges that arise during the bankruptcy process.

Avoiding Foreclosure

If you’re facing foreclosure on your home, filing for bankruptcy can temporarily halt the foreclosure process due to the automatic stay, which prevents creditors from pursuing collection actions. A bankruptcy attorney can help you explore options to prevent foreclosure and keep your home, such as loan modification or Chapter 13 bankruptcy.

Providing Legal Representation

Throughout the bankruptcy process, a bankruptcy attorney will provide experienced legal representation and guidance to protect your rights and interests. They will handle all aspects of your case, from preparing and filing paperwork to representing you in court hearings.

Understanding Legal Ways to Protect Your Home in Bankruptcy

Filing for bankruptcy can be a stressful and overwhelming experience, especially when it comes to concerns about losing your home. However, with the help of a knowledgeable bankruptcy attorney, you can navigate the process with confidence and protect your home from being sold to repay creditors.

Do you lose your home when you file for bankruptcy? If you’re considering bankruptcy and you need to protect your home when you file, we can help. Contact the Law Offices of Robert M. Geller at (813) 254-5696 to schedule a free consultation with an experienced attorney.

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Law Offices of Robert M. Geller, P.A.

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