If you’re considering filing for bankruptcy, you may already be feeling overwhelmed with the various consequences. For many filers, the question of whether they can keep their homes and other property is at the forefront. The question “Can I keep my home with bankruptcy?” has a complicated answer, but there are a number of ways to improve your chances.
Type of Bankruptcy
Choosing between chapter 7 and chapter 13 bankruptcy is an important decision, and there are a few different factors to take into consideration with each. Filing for chapter 13 bankruptcy offers a much higher likelihood you will be able to keep your home because of legal exemptions. After all, the purpose of bankruptcy isn’t to leave you in the poorhouse – it’s to give you a fresh start.
Equity in Your Home
If you are filing for chapter 7, you can still keep your home, depending on the amount of equity. Equity refers to the market value of your home when you subtract mortgage or home equity loans. With low or negative equity, your home may be exempt from being sold. If your equity is over the limit for exemption, however, you may have to sell your house to pay off some of your debts.
Whatever the case, a bankruptcy attorney will have the best advice for you. Whether you file for chapter 7 or chapter 13 bankruptcy, there are a number of implications on your assets, and a good lawyer will provide quality insights. Talk to your Bryan bankruptcy lawyer if you’re concerned about keeping your house.