Myth: Filing For Bankruptcy Means Losing Your Home
The American dream, as we all know, is owning our own home. This is a very important investment, one where we see our children grow up and where we enjoy so many family moments. The dream is built. Is is not merely an investment, but is where we reside, and where our joys flourish. A place to call home, relax, kick up our feet, lay our heads. At all cost it is something you want to protect.
Shame of filing bankruptcy is what many of us endure, when poor credit, overwhelming debt, businesses collapsing, poor investments and financial decisions knock on our doors. People by the many believe a question raised scares them, “Will I lose my home when I file for bankruptcy? Saving the home seems out of the question, while not out of the question is the guilt that is raised when they think of their family’s future and all the overwhelming burdens.
I am here to tell you that saving your home is not out of the question and you can successfully salvage your home while filing for bankruptcy. This raises the question “How is that possible? Isn’t my home at risk if I file for bankruptcy?” Most people file for bankruptcy in an effort to save their home from going into foreclosure. If you are filing for Chapter 13 bankruptcy, there is a good chance that you will be able to keep your home because you will be required to continue making mortgage payments as well as paying back payments if you have missed any.
The first thing you must do is figure out how much equity you have in your home. Once you find out how much your home is currently worth, subtract the amount you still owe from that amount. That will tell you the amount of equity you have. For example, if your house is worth $200,000, and you have $185,000 worth of mortgage loans still owed, your home equity would be $15,000.
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.
The Law Offices of Macron & Cowhey PC New York City Chapter 13 Bankruptcy Lawyers, visit their website for more information Queens Bankruptcy Lawyers on bankruptcy.
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