Get some broad insights into how bankruptcy can affect your home payments.
Are your finances a mess? Are you worried about what filing for bankruptcy might mean for your mortgage?
You need to call California Bankruptcy Relief. That way, you can get personalized advice from experienced bankruptcy attorney who understands your situation and your options.
Meanwhile, here are some questions you can ask yourself that will help you explore your possible options for a brighter financial future.
Do You Want to Keep Your Home?
The absolute first question you need to ask yourself whether it is wise to keep your current home. Your personal preference or emotional attachment to the home needs to be left out of the equation as much as possible. If you struggle to make your mortgage payments or keep up with maintenance on the home, and these expenses are major contributor to your debt load and a big part of the reason you are considering bankruptcy, you might want to consider simply getting rid of the home. If you do not have many other debts besides your mortgage, you might actually be able to place yourself on firm financial footing with a short sale, surrender, or foreclosure, which will protect your credit from the hit that a bankruptcy would otherwise cause.
How Big is Your Debt Problem?
It’s easy to get behind on your credit card bills, medical bills, or other expenses, and then suddenly have trouble making your mortgage payment. If you feel that your mortgage would be affordable based on your current income and living expenses, if only it wasn’t for all those other debts, you should definitely consider bankruptcy.
A successful Chapter 7 bankruptcy filing would give you the opportunity to eliminate your credit card debts completely so you can focus on your mortgage, while a Chapter 13 bankruptcy would put you in a court-sponsored repayment program that would bundle all your debts including your mortgage into one more affordable payment.
How Much Equity Do You Have in Your Home?
With a Chapter 13 bankruptcy, you can keep your home regardless of its value or how much equity you have in it. With a Chapter 7 bankruptcy, you are limited to the amount of equity permitted under the California state exemptions list. If you have too much equity, you would not pass the means test for Chapter 7.
Are You Facing Foreclosure?
If you are facing foreclosure, you need to make your decision quickly. Either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy may potentially be used to stop a foreclosure. With Chapter 7, the stoppage is temporary and the foreclosure process may be restarted if the creditor files a petition. However, Chapter 7 will give you a few months to catch up on your payments and sometimes that is all you need. With Chapter 13, you will get a much longer respite from foreclosure that will last for the entire 3 to 5 years it takes you to complete your Chapter 13 payment plan, provided of course that you keep up with the plan.
Remember, for personalized advice and assistance with your filing, contact California Bankruptcy Relief today.
