Can I Keep My Home If I File Bankruptcy?

There is a lot of misinformation about whether you can keep your home when you file bankruptcy. The truth is, depending on how much equity you have in your home, bankruptcy may be the best way to save it.

I am Cherry Hill, New Jersey bankruptcy lawyer Joel R. Spivack. I dedicate my entire practice to helping people seek debt relief through Chapter 7 and Chapter 13 filings. With more than 25 years of experience practicing exclusively in the area of bankruptcy law, I am in a strong position to help you protect your home.

Protecting the Equity in Your Home

Under federal bankruptcy exemptions, you are allowed to keep equity in your primary residence to a certain extent. If you file Chapter 13 bankruptcy and pay your debts off over time, you can keep all of the equity in your home.

Chapter 13 bankruptcy offers several advantages for homeowners with debt problems:

  • You can put mortgage arrearages in your Chapter 13 debt repayment plan and pay it over a five-year period without interest or penalties.
  • If you have a second mortgage and are underwater on your first mortgage, you may be able to strip the lien from the second mortgage.
  • By reducing other forms of debt such as credit card bills, you may find that you can more easily afford your house payments.

What If I Can’t Afford to Keep My House?

If you can’t afford your house payments, bankruptcy gives you time to consider your options. Filing bankruptcy will put an immediate stop to a home foreclosure. You can continue to live in your house for up to a year without making your mortgage payments while your bankruptcy is in process.

Filing bankruptcy will also allow you to discharge income from cancellation of mortgage debt by your lender following a foreclosure or short sale.

Schedule a Free Initial Consultation with a Cherry Hill Bankruptcy Attorney

To discuss your debt situation, call me, Cherry Hill bankruptcy lawyer Joel Spivack. You can reach me by phone at 856-861-6203, toll free at 866-488-2196, or via e-mail. My regular business hours are 8 a.m. to 5 p.m., Monday through Friday, and free parking is available.

To read more about bankruptcy frequently asked questions, click here.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.