Will The Bank Take Your Home If You File For Bankruptcy?
Posted - 11/21/2011
When you find yourself facing bankruptcy, and you own a home, you will need to file Chapter 13. Filing Chapter 13 will allow you to restructure your debt and keep your home. Your debts will need to be reviewed by the court, and a court appointed officer will determine a repayment plan. In most cases your past due debts will be repaid within 5 years. It is very important to secure the services of a bankruptcy attorney when you are filing Chapter 13. Unlike a Chapter 7 filing which is a basic filing for total absolution of your debts, a Chapter 13 can be very complicated. When you file Chapter 13, you want to make sure that you have good representation so that the repayment plan established is one that you can afford. If, at any time during the repayment period, you cannot make your payments to the court, you will lose the protection of the bankruptcy filing. This means that foreclosure proceedings can restart, and you risk losing your home. Bankruptcy is a valid way of restructuring your debts in a time of need. However, it is important that you receive legal representation so that you can receive the full benefits of the filing.