What Will Happen to My Home if I File Bankruptcy?
In most cases, you will not lose your home during your bankruptcy case as long as your equity in your home is fully exempt . If you have a taken out a loan that has been secured by your home (meaning you promised the lender it could have your home if you failed to pay the loan back), bankruptcy does not make that security interest go away.
If you don’t make your payments on that loan, the lender may be able to take and sell the home, during or after the bankruptcy case. If you are not behind on your loan payments, you may be able to keep your home if you agree to keep making payments. You may even be able to negotiate a lower principal amount, based on what your home is actually worth.
If you are behind on your loan payments, you probably want to file a Chapter 13 bankruptcy petition. Chapter 13 bankruptcy may allow you to pay what your home is currently worth versus what your loan amount is. Chapter 13 also allows you to catch up on your back payments and bring the loan current.
To learn more about whether or not Chapter 7 bankruptcy or Chapter 13 bankruptcy is your best option, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Our online scheduling system allows you to schedule bankruptcy consultation at a time that is convenient for you.
Colorado Bankruptcy Law Group, LLC is a personal bankruptcy firm serving clients in the greater Denver area.
