The answer to “should I sell my home to prevent bankruptcy” is a difficult one to ascertain. Which answer you get will certainly depend on who you ask. Making the decision to sell a home or file bankruptcy is quite the debt dilemma, and it’s certain that if your facing this decision, you have some serious debt problems. Some property experts have been quoted as saying it’s better to sell of a property and avoid bankruptcy, while other financial experts claim that you should not sell your home off to prevent bankruptcy.
Financial turmoil can often cloud our judgment, especially when making a sound decision is combined with the emotional trauma that is caused by the thought of potentially losing your home. With this in mind, the first step in making a decision to sell your home or file bankruptcy is to think objectively, and seek the advice of an experienced bankruptcy professional before acting. If you decide to sell property that has a significant amount of nonexempt equity, and then subsequently end up filing bankruptcy anyways, the circumstances of your bankruptcy case could be altered drastically.
The ultimate answer to the question as to whether or not you should sell your home to prevent bankruptcy is answered by a second question: do you WANT to keep the house? If your answer is yes, there is absolutely no reason you should delay in filing bankruptcy to fix your debt problems. You see, no matter where you live, which chapter of bankruptcy you file, or whether your use your state or federal exemptions, where you live is in essence, protected through bankruptcy exemptions. If you are behind on your bills and unable to find debt relief and even facing foreclosure, filing a Chapter 13 bankruptcy will save your home. In a Chapter 13 bankruptcy, your back payments can be made over the 3-5 year life of your bankruptcy repayment period, while setting up a plan to stay current on payments going forward. If you are considering selling your home to prevent bankruptcy, make sure to contact your local bankruptcy lawyer first. There may be unforeseen solutions to your debt problem that allow you to eliminate your debt while keeping your home.