Bankruptcy and Home Ownership, What You Need to Know
The most pressing concern for nearly every individual and his or her family who’s potentially facing a bankruptcy, is whether or not they will be able to retain their house. What happens to your house when you file for bankruptcy? Does filing for bankruptcy stop or prevent foreclosure? Read on to learn a little bit more about the processes involved.
In most cases, homeowners are able to retain their houses after filing for bankruptcy. That does not mean though that you’re “off the hook” for your mortgage. Rather, you will be able to continue your ownership of the house as long as you continue making payments. In certain circumstances, loan modifications may be possible, or payment plans to allow you to catch up and then continue making payments.
Further, if a lender is moving to foreclose on your home, filing for bankruptcy will often provide a solution for you to avoid that foreclosure and maintain your property. The key is that bankruptcy must be filed before the auction of a foreclosed home is completed. At this point, you will no longer be able to save your home, although you will be able to get out of the debt.
Based on your own circumstances, some individuals file bankruptcy while not seeking to stop a foreclosure. It’s a different approach, for an individual who’s seeking to avoid debt exposure while giving up his or her ownership of the home in the process.
When you’re ready to take the next step and learn how best to protect your home and other assets, and your family, get in touch with the team at Goren & Tucci. Our experienced Maryland bankruptcy attorneys will be happy to begin discussing your case, while helping you understand what the best course of action will be for your particular situation.