Saving Your Home While Filing Bankruptcy

The foundation of where the American dream is built, is in that important investment of owning a home. A place where we raise our children, enjoying all those precious family moments. A place to build a strong foundation. It is where our hearts reside, home sweet home. Where we unwind, sleep, and live every minute of our lives. Something you want to protect at all costs.

Although many of us are ashamed of filing bankruptcy, it is something that many of us have to endure, due to poor credit, overwhelming debt, businesses gone bad or poor investments and financial decisions. Many people are scared to file for bankruptcy because it raises the question, “Will I be able to save my home while filing for bankruptcy?” Many people think that saving their home is out of the question when filing for bankruptcy and in return raises guilt, questions about their family’s future and many various overwhelming burdens.

You will be pleased to learn that it is not out of the question to save your home and you can do this successfully when filing for bankruptcy. “How is that possible?” you may ponder. “Bankruptcy won’t put my home at a risk?” In an effort to save their homes from reaching foreclosure, many people will file for bankruptcy. With Chapter 13 bankruptcy filing, a good chance will be that you will be able to keep your home, yet still be required to continue with mortgage payments as well as paying back payments if any were missed.

There are first steps in dealing with bankruptcy and your home. First you have to figure out how much equity you have in your home. When you have reached this answer, subtract the amount still owed from that amount. This will tell you the amount of equity you have. If you have $185,000 worth of mortgage loans owed, and your house is worth $200,000, $15,000 would be your home equity.

There is a current federal homestead exemption and that amount is $18,450. If $18,450 or less is what you have in equity, you may be able to keep it. If it is more than the exemption amount stated, you possibly may be at risk of losing your home. Before proceeding with filing for bankruptcy, the recommendation is checking your home’s worth, the amount of equity and continue thereon. Do not be fearful of losing your home, you may be able to keep it. Once you have your papers in order, an experienced bankruptcy lawyer should be the first one you contact.

Save your home while filing for bankruptcy New York City Bankruptcy Attorneys, the Law Offices of Macron & Cowhey Queens Bankruptcy Law Firm can help.