What Happens to Your House in a Bankruptcy?

If you're considering filing for bankruptcy, one of the biggest concerns you may have is what will happen to your house. Will you lose it? Will you be able to keep it? The good news is that in many cases, you can keep your house. Here are some tips to help you keep your house in bankruptcy.

1. Understand the Different Types of Bankruptcy

There are two types of bankruptcy that can help you keep your house: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a liquidation bankruptcy, which means that your assets are sold to pay off your debts. However, there are exemptions that can protect your house. Chapter 13 bankruptcy is a reorganization bankruptcy, which means that you can keep your assets and pay off your debts over time.

2. Know Your State's Homestead Exemption

Each state has a homestead exemption that can protect a certain amount of equity in your home. This means that if you have equity in your home that is less than the amount protected by the homestead exemption, you can keep your home. It's important to know your state's homestead exemption and how it applies to your situation.

3. Keep Making Your Mortgage Payments

If you want to keep your house in a bankruptcy, it's important to keep making your mortgage payments. If you fall behind on your mortgage payments, your lender may foreclose on your home. If you're struggling to make your mortgage payments, talk to your lender about your options.

4. Consider a Loan Modification

If you're struggling to make your mortgage payments, a loan modification may be an option. A loan modification is a change to your mortgage that can make your payments more affordable. This can help you keep your house and avoid foreclosure.

5. Work with a Bankruptcy Attorney

If you're considering bankruptcy, it's important to work with a bankruptcy attorney. A bankruptcy attorney can help you understand your options and navigate the bankruptcy process. They can also help you keep your house and protect your assets.

If you need help with bankruptcy in Baton Rouge, LA, contact Grand Law Firm. Our experienced bankruptcy attorneys can help you understand your options and navigate the bankruptcy process. Contact us today to schedule a consultation.

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