When faced with the threat of foreclosure, the thought of losing your home may have you paralyzed. You may be desperately searching for solutions. One of the most frequently asked questions attorneys hear is, “Can I keep my house if I file bankruptcy?” Filing for bankruptcy may seem like the easiest solution to help you keep your home. Attorney Mike Hall has over 30 years of experience in bankruptcy law in the state of Georgia. He uses that experience to serve clients in South Georgia, and has offices in Statesboro, Georgia and Springfield, Georgia. Here he addresses the real issue facing those who are concerned about foreclosure.
“You can always keep your house upon filing bankruptcy. The real issue, then, after the bankruptcy is filed, is whether you can pay for the house. The bankruptcy does not allow you to change the necessary terms of the mortgage. It allows you to catch up the payments.”
This can be a tremendous relief for those individuals have simply need time and a plan for repaying their debt. Often, by filing Chapter 13 bankruptcy, clients are able to repay loans by negotiating significantly lower interest rates and lower payments. Some unsecured debt, such as credit card debt, may be discharged altogether. When filing Chapter 7, the majority of a client’s debts are completely eliminated. This lightens the burden of overall debt and frees clients to allocate more income to pay for their home.
Will Bankruptcy Lower My Mortgage Payment?
“So, if you file a bankruptcy, the foreclosure will be stopped. But you have to figure out whether or not you can retain the house long-term by catching up the payments with regular monthly payments. No bankruptcy can modify the terms of a regular house mortgage.”
This means that the time to refinance your home is before you file for bankruptcy. Once an individual has entered into the bankruptcy process, there is no way to refinance or modify the terms of the mortgage, and there is a waiting period of at least two years after the filing is complete.
The only way to be certain that you are making the best possible choice, is to discuss your situation with an experienced bankruptcy attorney who can evaluate your specific circumstances.Let the attorneys at Hall & Navarro help you determine if refinancing is a viable option for you. If you are unable to modify your mortgage with your lending company, we will do everything in our power to help you keep your home.
You can begin by taking our FREE Online Bankruptcy Case Evaluation, or call for a free one hour bankruptcy consultation. At Hall & Navarro, we have been serving Bulloch and Effingham counties for over three decades. Let us help you today.