Many people in tight financial situations do their best to stick it through, despite incurring more and more debt as time goes on. They have this idea that if they filed for bankruptcy, they would end up losing whatever assets they still have. One asset than many hope never to lose is their home. For those of you that worry, the good news is that you will not always lose your home when filing for bankruptcy. In fact, you can often protect property like your home. Read on to find out how.
Protecting the Value in Your Home
While it may vary from state to state, most of them let you protect some amount of value in your home. It might be a number as small as zero or it might extend to cover all of your equity or something in between.
An experienced bankruptcy attorney can help you determine what exemptions exist within your state. They can also help you take a look at federal exemptions to see if those would be a better fit.
Also keep in mind that exemptions will vary based on what chapter you file under. For example, if you are looking to protect your home, it might be in your best interest to file for Chapter 13 bankruptcy.
Under Chapter 13 you are not required to turn over any property other than cash. You just have to submit a proposed plan to make monthly payments over the course of three to five years to a bankruptcy trustee. They will then distribute the money to the proper creditors.
In order for your payment plan to be approved, it must meet two stipulations. It must be a good deal for the unsecured creditors and it must also be financially feasible for you. Again, help from an experienced bankruptcy attorney can help you make the right choice when it comes to filing for bankruptcy.
NJ Attorney Will Help You Get a Fresh Start
Choosing to file for bankruptcy is a big decision and requires the utmost care. Any mistakes in your petition could mean you will be denied. In order to make sure your bankruptcy is up to par, you need the expertise of Joel R. Spivack, Esq. The New Jersey bankruptcy lawyer has been helping clients across the state for over 25 years now. He will provide you with honest, reliable advice and the options available to help you get your finances in order. Fill out the online contact form to begin discussing your options with an experienced attorney today.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.