Can You Remain in Your Home If You File for Bankruptcy?
Are you able to keep your property even if you file for bankruptcy?
Secured debts could remain in a bankruptcy
If you have a home mortgage or car loan, or another kind of secured debt you may wonder whether you could keep the property if you file for bankruptcy. While the majority of cases, the answer is yes, there are certain exceptions. You will want to discuss your specific situation with an attorney and know the consequences of filing.
The most important thing to remember about secured loans is that it's property that is a lien on the debt. If you do not make payments, the creditor is able to repossess your collateral. However, they can't sue you for bankruptcy. You can keep your property in the event that you pay regular payments. But you will be unable to use your secured loan is not able to be used to repay. If you wish to retain your property, you will need to confirm the debt under Chapter 13.
Reaffirm your debts under bankruptcy if you are behind in mortgage or car payment. This will let you resolve your financial problems and make progress in your repayments. It allows the creditor to access your home, and result in you losing the value of your property.
Secured creditors are based on a security arrangement, such as a deed or trust, mortgage, or judgment lien. If you don't pay them, they can take possession of your property and collect fees and interest. It is imperative to pay the debt again after the property is taken.
Saving your collateral could save thousands of dollars. You must retain the insurance that you paid to secure the purchase and continue making your payments. You may negotiate a new contract with your creditor, or transfer your collateral to another. Negotiations are possible and can lead to your creditor cutting or extending the time you pay it, or offering additional terms.
Selling your property is a different method to stay out of foreclosure. If you're behind on your mortgage payments, certain states permit creditors to seize the equity of your home. If you are in need of cash, selling your home will help pay back your credit card.
Reaffirming debts in Chapter 7 bankruptcy is another option. A majority of debts are wiped out during bankruptcy, however certain lien liens that are associated with certain secured debts will not. These liens will be on your credit report, and could affect your credit score. After filing bankruptcy, it is important to examine your credit reports.
Certain debts are able to be paid off, but they will be on your credit reports. There is also a statute of limitation which requires a certain amount of time to get removed from your credit report. People often assume they are aware of the rules and regulations, but then realize they're wrong. Rules are subject to change and they may not be easily understood. The best thing to do is to research before declaring bankruptcy. Although no one wants to go through this, you should be prepared should you be forced to.
It can be difficult to understand the bankruptcy procedure. The automatic stay, which serves as legal protection that stops creditors from taking further actions against you, is an important idea to remember. The debtor is able to stop the collection process, but you may refuse to do so. If the creditor does not agree with the stay, they could be able to ask the court for the lifting of the stay. Look at websites such as https://www.ljacobsonlaw.com/pa/harrisburg-bankruptcy-attorney/ for more information on bankruptcy and seek professional advice to answer your questions.
There's a lot bankruptcy fraud going around. Sometimes people are manipulated into thinking they're getting help by a bankruptcy lawyer however, they are in deeper financial trouble than they anticipated. Before signing any legal document, make sure that you have go over the specifics.