At Gudeman & Associates we use our experience and knowledge of bankruptcy laws to ensure you are protected. That includes protecting your family home. Your mortgage company cannot take your house away just because you have filed for personal bankruptcy. The process of debt discharge or reorganization in bankruptcy is one of the most powerful rights you can exercise. You have the right to have peace of mind, the right not to be harassed by overly aggressive creditors seeking to collect debts, and most importantly, the right to keep your house.
Making Payments to Keep Your House
Unless you are completely incapable of making your house payments following a personal bankruptcy filing, you can keep your house. In Chapter 13, you incorporate any past due payments into your overall debt payment plan. That serves as an interest-free loan on the arrearages. If you file a Chapter 7 bankruptcy, you need to reaffirm that debt if you are current on your mortgage or can bring it to current status and continue making payments.