Will I Lose My Home if I File for Bankruptcy?
Put Years of Experience in Your Corner
If you are a homeowner that is considering filing for bankruptcy, you may be concerned about the possibility of losing your home. For most people keeping your home in bankruptcy is simple. Make your mortgage payments and keep your home. This is just the way it was before you filed. The exception, if you own a home with more than $500,000 in equity. This means if you have a home with no mortgage and it is worth $500,000 or less, the bankruptcy laws fully protect your home. Elderly and disabled Massachusetts Debtors may even be able to keep a $1,000,000 dollar home with no mortgage and still be fully protected.
If your home has no equity, you will be allowed to keep your house as long as you continue making your monthly mortgage payments. In situations where there is equity in the house, the homeowner may still find that their property is exempt from liquidation. A lawyer should be contacted and asked to review your finances to determine your qualifications for Chapter 7. Once it has been established that you can file for Chapter 7 bankruptcy, you can find out if your home and other assets will be exempt from liquidation.
Foreclosure Prevention in Massachusetts
Many Massachusetts debtors file for bankruptcy to retain their home and protect it from foreclosure. Filing a bankruptcy petition with the bankruptcy court will immediately stay the foreclosure on your home. In order to stop the foreclosure of your home bankruptcy MUST be filed prior to the foreclosure sale.
What are the Benefits of Declaring Bankruptcy?
- Stay the foreclosure on your home, STOP FORECLOSURE INSTANTLY;
- Give you time to work with your lender on a home loan modification;
- Give you a chance to catch up the missed mortgage payments;
- Eliminate second mortgages and equity lines of credit;
- Protect any equity you have in your home.
Bankruptcy will also eliminate most if not all your unsecured debt, like credit cards and medical bills. By eliminating your unsecured debt, second mortgage and other obligations your mortgage loan will become much more affordable for you.
Asset Protection in Massachusetts
Financial difficulties can become increasingly unbearable and result in legal actions such as foreclosure, repossession and wage garnishment. If you are looking for a debt solution, Kovacs Law, P.C. can explain the bankruptcy process, as well as its advantages and disadvantages.
Bankruptcy typically does not include a liquidation of any asset. The Massachusetts or Federal Exemptions laws allow most people to keep all of their property. Bankruptcy protects your assets from your creditors.
What Can Bankruptcy Prevent?
- Foreclosure of your home
- Repossession of your car
- Seizure of your assets by the sheriff
- Judgments and executions
- Attachments and liens on your home or other real property
- Wage garnishment
- Creditor harassment, phone calls and collection letters
- Lawsuits and other legal action
Our firm will provide whatever legal help is needed to get you out of debt and back on the road to financial prosperity. We care about the welfare of our clients, and will provide whatever legal support is needed before, during and after your bankruptcy petition has been filed.
Contact a lawyer for legal advice and representation if you are intending to file for bankruptcy.
We're also available to help you and your family overcome complex legal cases. Our team has decades of experience navigating cases involving divorce, child custody, spousal support, and other family law matters.
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