Among the many questions a person may have when filing for bankruptcy is what will become of their home. Generally speaking, your home will be protected during a bankruptcy as long as your equity in the home is fully exempt. Even if your home’s equity is not fully exempt you could keep it if you pay its non-exempt value to creditors in a Chapter 13 bankruptcy. Regardless of the state in which you live, there are state and federal bankruptcy statutes that provide exemptions for homeowners.
A homeowner that files for Chapter 7 bankruptcy may be able to have his or her home exempt from liquidation but Bankruptcy does not make mortgages go away so if you have a mortgage then you must continue to pay it if you want to keep the property. If you decide to keep your home after the bankruptcy then you will sign a reaffirmation agreement for the debt.
Before making your decision to file for bankruptcy, you’ll need to determine whether or not you wish to remain in your home. High monthly mortgage payments could result in foreclosure if the payments can’t be made. Filing for bankruptcy could also result in a lender being less willing to renegotiate or modify your existing mortgage so it may be a wiser idea to take care of this prior to filing.
Besides your home there are other assets such as pensions and retirement accounts that may be protected in a bankruptcy. Make sure to talk with your bankruptcy attorney so you’re fully aware of what your options are and what you can expect.
This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our Miami insurance attorneys and receive a free consultation. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.