Keeping Your Home After Bankruptcy
It is one of the most common concerns our clients have: will declaring bankruptcy mean they will lose their home? At Lichtenegger Law Firm in Jackson, Missouri, our attorneys do everything possible to help individuals and families struggling with overwhelming debt use bankruptcy to keep their homes.
Bankruptcy And Foreclosure
The first thing that filing for bankruptcy does for you is put an automatic stay on your debts. Essentially, the stay is a pause on debt collection. Once the bankruptcy court issues the stay, your creditors must stop all collection activities until the bankruptcy is finalized. If you are currently in foreclosure, this can help you stay in your home for several months at least.
Both Chapter 7 bankruptcy and Chapter 13 bankruptcy offer help to homeowners.
Chapter 13 bankruptcy lets you set up a plan to repay your debts, including your mortgage, in regular installments. If you are able to pay down your past due mortgage debt while also staying current on your new mortgage payments, you will get to keep your home once your bankruptcy is finished. In addition, if you have a second or even a third mortgage, you may be able to discharge them in Chapter 13.
In Chapter 7 bankruptcy, the court cancels all debts secured by your home, including your primary mortgage. While this usually provides significant financial relief, it does not release the lien the lender holds on your home. So you are still at risk at losing your home to foreclosure once you are done with bankruptcy. However, at least you will be to move on and find a new place to live without the old mortgage hanging over your head.
To learn more about how we can help you fight for your family home, please contact Lichtenegger Law Firm at 573-243-8463 for a free 30-minute consultation with one of our bankruptcy lawyers. We serve clients in Perryville and Marble Hill.