Will I Lose My House If I File Bankruptcy?

Protecting the family home is foremost in the minds of nearly everyone who files bankruptcy. The impact of foreclosure can be devastating to a family. However, the fact is that filing Chapter 7 or Chapter 13 bankruptcy does not mean that you will lose your house. For this to happen, the equity in your home must be fully or partially exempt and they are up to date on their mortgage payments.

DAL Law FirmEach situation is unique, so an initial meeting with DAL Law Firm attorney Darcel Lobo is often frank but nonjudgmental. She listens to the needs and goals of her clients and determines the best course of action based on years of experience working in bankruptcy law and other debt relief matters.

Three Questions To Ask When Considering Bankruptcy

Those who want to hold onto their home, which we generally recommend in this housing market, should think about the following in regard to their bankruptcy filing:

  • What type of bankruptcy is right for me? The most common forms are Chapter 7 and 13. Each offers different exemptions that you are entitled to. Since Chapter 13 is a restructuring of your debt, it is generally assumed that you would stay in your primary residence if you can afford the new adjusted payments. Chapter 7 is a liquidation of assets, and while some still keep their house, it is harder to do.
  • Can you afford the mortgage? A creditor can and will foreclose on a property if you have not made your mortgage payments. If you continue to pay the mortgage until all debts are repaid, then you can keep your home.
  • How much equity do you have in your home? If you are under the exemption limit or have no equity in your home, the creditor may not foreclose on your house. If you are over the exemption limit of $40,000 then the filer may be required to sell the home to pay debts.

Will You Keep Your Home If You File Bankruptcy? A Bankruptcy Attorney Can Help You Avoid It.

The federal government is not known for its flexibility in regard to regulations, but a lawyer with strong background in bankruptcy law can be a huge asset in addressing issues in filing bankruptcy or in Western District of Washington U.S. Bankruptcy Court. There are different factors, such as income and size of the family, which will influence the amounts and what you qualify for. Call our office in Normandy Park at 206-408-1688 or contact us online to learn how we can help.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.