When people consult with a bankruptcy lawyer St. Petersburg FL, one of the first questions they ask is whether they can keep their home. The answer depends on whether you’re filing for a straight Chapter 7 bankruptcy or Chapter 13 reorganization, and how far into the foreclosure process you may or may not be when you file.
Chapter 7
If you’re already in arrears on your mortgage payments and you file for Chapter 7 liquidation bankruptcy, you’re probably going to lose your home. You might be able to stay in the home a bit longer, but ultimately, you’ll be foreclosed on. If the property is sold after foreclosure, the balance of your mortgage debt can be discharged in a Chapter 7 straight bankruptcy.
Chapter 13
If you’re in arrears on your mortgage and you file for Chapter 13 relief, you might be able to keep your home. As a matter of fact, saving their home is one of the primary reasons people choose Chapter 13 over Chapter 7.
Chapter 13 reorganization involves a three to five year plan. Assuming that your Chapter 13 bankruptcy plan is approved by the court, and you continue to make your current mortgage payments, your lender won’t be permitted to file a foreclosure action.
Whether you file for Chapter 7 or Chapter 13 relief should be carefully thought out and discussed with your bankruptcy lawyer St. Petersburg FL. Either type of a bankruptcy proceeding will affect your credit for up to 10 years, but it might be the only option you have.
A bankruptcy lawyer can assist you in preparing the proper paperwork, filing it, and attending court proceedings with you. Most people who file for bankruptcy need only appear in court one time.
Call the Law Office of Robert M. Geller, P.A. with your consumer bankruptcy questions at 813-296-6587, or use the easy contact form at https://www.attorneyfortampabay.com.
