Probably one of the most common questions bankruptcy lawyers are asked by clients is if they will lose their home when they file bankruptcy. While each individual circumstance is different, in most cases, you will not lose your home. However, you will still be required to make your mortgage payments if you wish to keep your home. Here are some additional factors to consider:
- Chapter 13 bankruptcy is a restructuring of debt. If you are facing foreclosure and wish to keep your home, your bankruptcy attorney may propose a re-payment plan that covers catching up on delinquent mortgage payments.
- You are allowed to exempt some of the equity of your home from bankruptcy. Your bankruptcy lawyer can discuss how this may work in your case.
- Depending on your circumstances, Chapter 13 bankruptcy may allow you to eliminate a wholly unsecured second mortgage on your home. A wholly unsecured second mortgage is one where there is no equity in your home to attach. Again, your bankruptcy attorney will need to look closely at this to determine if your existing second mortgage qualifies.
When filing bankruptcy, Charleston area residents know they can trust the Drose Law Firm to find them the freedom and relief they need. While some bankruptcy lawyers take a “cookie cutter” approach, our bankruptcy attorneys personalize our services and are passionate about providing qualified, experienced advice to the clients we serve. If you are considering filing bankruptcy in Charleston or surrounding areas, we’re here to help. Give Drose Law Firm a call today!