Is bankruptcy right for you?
Bankruptcy does not have to be the only option you have, but it is often a good option for those who have become overwhelmed with debt and are unable to pay their creditors. Bankruptcy allows you to stop creditors from taking your property and it may allow you to discharge some or all of your debts.
Bankruptcy also gives you a fresh start and allows you to rebuild your credit and financial future.
Will you lose all of your property in bankruptcy?
If you file for Chapter 7 bankruptcy, you can keep your house. However, your creditors may be able to take certain things that you own that are exempt from bankruptcy, such as jewelry, an expensive car, a boat, etc.
In order to keep your house, you must be able to show that you have enough equity in your home to pay off your creditors.
The bankruptcy judge will then determine whether you have the right to keep the property. If you have equity in your home, but are unable to pay off your creditors, you may be able to either reaffirm the debt, or to enter into a repayment plan.
The Chapter 13 bankruptcy may be more advantageous to you if you are unable to pay off your creditors. In the case of a Chapter 13, you can file a repayment plan which allows you to pay off your creditors over a period of time. If you are unable to make payments on your plan, you may be able to get out of the plan without losing your property.
For more information about how to keep your home or other property while resolving your debt obligations, call our team of experienced Houston bankruptcy attorneys today.