Can I Keep My Property if I File for Bankruptcy?

Can I Keep My Property if I File for Bankruptcy?

Many people ofter wonder, “Can I Keep My Property if I File for Bankruptcy?” If you decide to file for Chapter 13 bankruptcy, you will keep all of your property. Chapter 13 is a reorganization bankruptcy. Through the filing you and the bankruptcy court come up with a new repayment plan that can help you pay off your debts more easily in a process that takes about 3 to 5 years. Because you still intend to pay off your debts, you get to keep your assets such as your home, vehicles, and other property, as long as you continue to make payments through the plan. 

In Chapter 7 bankruptcy, you are asking the bankruptcy court to discharge most of your debts. During this process, the bankruptcy trustee can seize your property, sell it, and use the proceeds to pay off the creditors. Some property is exempt through state laws. Exemptions can include equity in your home, insurance, retirement plans, personal property such as clothing and furniture, public benefits, and tools for your job.

If you have any more questions concerning how bankruptcy will affect your property, call Hathaway Law today!

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Can Bankruptcy Stop the Foreclosure of My Home?

Can Bankruptcy Stop the Foreclosure of My Home?

Many people facing foreclosure ask, “Can Bankruptcy Stop the Foreclosure of My Home?” Chapter 13 bankruptcy is a reorganizational plan that can be a good way to save your home from foreclosure. It will allow you to pay off a mortgage “arrearage” that includes late and unpaid payments over the course of the repayment plan (usually lasting 3 to 5 years). In order to file for Chapter 13 bankruptcy, you will need to have a source of income large enough to meet your current mortgage payment plus the arrearage.

During Chapter 7 bankruptcy, the court-appointed trustee may sell your home to repay creditors if there is enough equity in the property. However, this does not happen very often. More likely, the Chapter 7 process will include the lender continuing with the foreclosure as planned. Not an optimal strategy to use if your main goal is to avoid foreclosure.

If your only concern is stopping the foreclosure of your home, you should consider other options first. You might be able to negotiate with your lender to modify the arrearages, such as accepting partial payments for a certain amount of time, accepting a late payment, or redoing the terms of the loan. It’s also possible to get government help with modifying your loan agreements. The Home Affordable Modification Program (HAMP) attempts to help homeowners in financial hardship get their loan terms modified and their monthly payments lowered.

If you are suffering from financial hardship and the possibility of losing your home, you must be especially careful of scam artists who love to prey on people at their most desperate times. Be very careful when signing any documents, and always get a professional opinion first. Scam artists have been known to provide documents that essentially sign the property title over to them, making you a renter instead of an owner.

If you have any questions concerning your home’s foreclosure and whether or not bankruptcy is right for you, call Hathaway Law today. The legal team at Hathaway would be happy to help you through this difficult time and figure out the best solution for your problem.

Daniel A. Higson – Attorney at Law – Ventura, California

Dan Higson

Daniel Higson Attorney in Ventura – Law Offices of Hathaway, Perrett, Webster, Powers, Chrisman & Gutierrez – 805-644-7111Ventura Attorney Daniel A. Higson is a Certified Bankruptcy Specialist who has been practicing law in Ventura County for 38 years. If you have absolutely any assets or any interest in a business, it is imperative that you see Ventura Attorney Daniel A. Higson. During your free consultation, Dan and his talented staff will determine which course of action is right for you. They are experts in navigating you through the process, always available to answer any questions you may have at any time. Mr. Higson is the only Certified Bankruptcy Specialist in Ventura County certified by two boards – the State Bar of California Board of Legal Specialization and The American Board of Certification.  Mr. Higson lives in Ojai, California with his wife Deanna. He enjoys tennis, sailing,  painting and watching college football. Mr. Higson graduated from the University of Redlands in 1970, with a B.A. Degree. After college, Mr. Higson joined the U.S Army, spending one year deployed in Vietnam. He completed his Law Degree in 1976, graduating from the University of La Verne College of Law.