Dealing with bankruptcy is never easy, but it doesn’t have to mean losing everything. If you’re facing financial challenges and considering filing for Chapter 7 bankruptcy, you may feel lost and unsure of how to protect your assets. Chapter 7 bankruptcy can provide financial relief for those who are drowning in debt and struggling to make payments on their mortgage. Don’t worry. It is possible to save your house and mortgage while navigating bankruptcy. In fact, filing for bankruptcy can be the first step towards a fresh financial start. In this blog post, we will discuss how you can survive Chapter 7 bankruptcy while keeping your home, and understand when it’s time to call Integrity Law Group.
Understand Your Chapter 7 Bankruptcy Options
Chapter 7 bankruptcy is a powerful legal tool designed to help people with debt problems get a fresh start. It allows you to discharge most unsecured debts like credit card debt, medical bills, and payday loans. It is also a liquidation process where your debts are wiped out, and your non-exempt assets are liquidated to pay creditors. However, federal and state laws provide exemptions that allow you to keep essential belongings, including your primary residence. In Washington State, the homestead exemption protects a homeowner’s equity and prevents the bankruptcy trustee from selling your home. However, Chapter 7 bankruptcy does not discharge secured debts, such as mortgages or car loans. To keep your house through bankruptcy, you need a good understanding of your options.
Keep Up With Your Mortgage Payments
To protect your home and mortgage, it’s important to continue making your mortgage payments on time. In Chapter 7 bankruptcy, your mortgage is treated as a secured debt, meaning the house secures the loan. As long as you continue to make payments, the lender can’t foreclose on your home. However, if you miss payments, the lender can immediately begin foreclosure proceedings. During bankruptcy, you’ll need to disclose your mortgage payment amount and any arrearages to the bankruptcy trustee.
Reaffirm Your Mortgage
Reaffirmation is an agreement made between you and your lender that the mortgage debt will not be discharged in bankruptcy. You’ll continue making payments as agreed, and the lender won’t foreclose on the home. Reaffirmation is not required, but it’s often in your best interest to do so. It’s important to speak with an experienced bankruptcy attorney to decide whether reaffirming your mortgage is right for you.
Get a Repayment Plan
One option may be to talk to your mortgage provider and try to get a repayment plan that will keep you up to date on your payments while you file for bankruptcy. This option requires a negotiation with your mortgage provider to come up with a plan that will be acceptable to both of you. This can be a difficult and lengthy process, but it may be necessary for keeping your home and protecting it from foreclosure.
Determine What You Can Afford
After bankruptcy, you will need to start rebuilding your credit and financial stability. Deciding what you can realistically afford to pay each month toward your mortgage or other debts is crucial. Your attorney will be able to help you explore available options for reducing expenses and prioritizing financial responsibilities, so you can manage your finances while paying your mortgage.
Don’t Wait to Seek Help
It’s never too early to seek help from a bankruptcy attorney. You may be hesitant to file for bankruptcy, but the longer you wait, the harder it may be to save your home. An attorney can help you understand your debt relief options, including how Chapter 7 bankruptcy works, and provide you with the guidance necessary to make informed decisions. If you’re struggling with debt and considering bankruptcy, reach out to Integrity Law Group for a free consultation.
Hire an Experienced Attorney
It’s always recommended to hire an attorney, especially when dealing with bankruptcy. An experienced attorney with Integrity Law Group will help you understand your options, negotiate with your mortgage provider, and protect your assets during Chapter 7 bankruptcy. They can assess your individual situation and help you determine the best course of action to take in terms of keeping your home through this process.
Know When to Call Integrity Law Group
If you’re struggling with debt and don’t want to lose your house or other assets, it’s time to call Integrity Law Group. We are a team of experienced attorneys who specialize in bankruptcy law and have helped countless people like you navigate Chapter 7 bankruptcy. Our goal is always to help you keep your home, preserve your credit, and secure your financial future.
Trust Integrity Law Group to Guide You Through the Process
The bankruptcy process can be complex and confusing, especially when it comes to protecting your home and mortgage. Trust the experienced bankruptcy attorneys at Integrity Law Group to guide you through the process every step of the way. Our team will provide you with the guidance necessary to make smart, informed decisions about your financial future, and help you create a plan to achieve your goals.
Filing for Chapter 7 bankruptcy can be a difficult and stressful time. But it’s not the end of the road, and you can come out of it with your assets and financial future intact. Remember, understanding your options, negotiating with your mortgage provider, and seeking help from a trusted bankruptcy attorney like the team at Integrity Law Group are all critical steps in your journey to surviving Chapter 7 bankruptcy and keeping your home. If you’re considering Chapter 7 bankruptcy, don’t wait to reach out to Integrity Law Group for a free consultation.