The personal bankruptcy process can be extremely effective when it comes to erasing large portions of accumulated debt, though there are also some significant risks that must be considered. In addition to the damage that claiming bankruptcy can impart on your credit rating, filing bankruptcy can also place your valuable assets at risk, particularly if you choose to file under Chapter 7. One of the most common concerns shared by debtors is the potential impact that a bankruptcy claim might have on their homes. If you want to know how to go bankrupt and keep your house then we have some information that might be worth reviewing.

The good news is that it’s possible to file bankruptcy and keep your home, though only under certain circumstances. In general, if you’ve been making on-time mortgage payments and your payments aren’t in arrears then you have a good shot at holding onto your home. Every state has different “homestead exemption” laws, so it’s important to meet with a qualified bankruptcy attorney to see where you stand. Unfortunately, it’s simply not possible to say with certainty that your home will be exempt from liquidation, since every case is different.

Another strategy that can help you retain your home is to file under Chapter 13. Also referred to as “reorganization” bankruptcy, Chapter 13 creates a repayment plan that allows individuals with regular income to repay all or part of their debts. Typically, payments are made to creditors over a period of 3-5 years during which the debtor is able to retain assets like homes, vehicles and other items of value. Once a debtor has filed bankruptcy under Chapter 13, creditors are prohibited from making collection efforts.
Know that you know how to go bankrupt and keep your house, perhaps you want to find out if bankruptcy is the right option for you. You can learn more about this by filling out our free bankruptcy evaluation. We are also proud to offer detailed information on how to claim bankruptcy for those who are interested in learning more.

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Click on the following link to find out the answer to the question “Can I go bankrupt and keep my house?”