When deciding to file bankruptcy one of the most important questions to consider is whether or not you will lose your home. The first thing to understand are the two main types of bankruptcy, chapter 7 & chapter 13.
Chapter 7 Bankruptcy
In Chapter 7 bankruptcy, you can wipe your debts clean and get a fresh start. In this type of bankruptcy, you liquidate your assets and sell them apart from any exempted assets. Your trustees then distribute the proceeds of the assets. It can be possible to lose your home under chapter 7 bankruptcy. If you own a home and are planning to file chapter 7 bankruptcy, it is important that you consult with an experienced bankruptcy attorney.
Chapter 13 Bankruptcy
Chapter 13 proposes a repayment plan that lasts for three to five years. Chapter 13 bankruptcy can help you save your home. As long as you can stick to the repayment plan, all the remaining dischargeable debts are released after the repayment plan and there should be no danger of losing your home.
Keeping up with your overdue payments for certain obligations is another advantage of filing under Chapter 13. This includes home mortgages. This will allow you to gain ground on your payments for up to sixty months and prevent the foreclosure of your home or seizure of your assets.
If you are looking to file bankruptcy, we can help. The Atlanta bankruptcy attorneys at King & King can assess your case and walk you through the impact bankruptcy would have on your home. Call us today at 404-524-6400 for a free consultation.
