In movies and the media, bankruptcy is often portrayed as a devastating process that strips the filer of all possessions, including their homes. It is no surprise that many people who want to file for bankruptcy hesitate because they are concerned they could lose their household and, therefore, stability and sense of security. Is this really something that people should be worrying about as much as they do? Or, is it pretty uncommon for someone to lose their home due to bankruptcy?
There is no reason to hide the truth that some people do lose their homes during bankruptcy due to large outstanding debts and mortgages. However, statistically, most people do keep their homes when they file for bankruptcy.
In a Chapter 7 bankruptcy, which is a liquidation of your assets, your home must be exempt using the Georgia exemptions and needs to be current in order to reaffirm the debt to the creditor. The individual will make their on-going payment direct to the mortgage creditor, as always, throughout the continuation and after the conclusion of their bankruptcy case. In a Chapter 13 bankruptcy, any arrears on your home can be paid through your Chapter 13 plan. Just keep in mind that your on-going monthly mortgage payment is paid direct by you to the creditor. This is not something that is automatically handled by a third-party.
No matter how you go about it, filing for bankruptcy will have risks and rewards. If you want to maximize the rewards while minimizing the risks, you will complete your filing with the Northwest Georgia bankruptcy attorneys at Bournakis and Mitchell, P.C. Our law firm brings years of legal experience and a genuine interest in our clients’ wellbeing and financial situation to each case we take. When you are wondering if bankruptcy is right for you, do not hesitate to contact us and ask for a free initial consultation to learn more.