Is It Possible to Keep the House If You File Bankruptcy in Philadelphia?
While filing for bankruptcy, most of the debtors get scared thinking that they will have to let go of their homes. Also, the amount of effort and debt you have taken can be the result of the bankruptcy itself, this possibility can be frightening. Even though there are many who think that there is no hope when you have excess debts, it is not the case. In fact, bankruptcy can be the tool for keeping your home and delaying foreclosure. Our Pittsburgh bankruptcy lawyer can enlighten you on this topic.What Will Happen to Your House After Your File for Bankruptcy in Pennsylvania?
Obviously, mounting debts can be a reason for many troubles for you. But often situations go out of your control and even with the best efforts, you cannot do anything when the debts start to increase. Unexpected events like fire, flood, accident, or sudden illness can completely throw you off the balance. And that can result in debts that affect millions of Americans every year.
The debts can be the reason you become stressed and overwhelmed. And if your home is at stake and you are already receiving letters from the creditors for the payments, then surely you are very anxious. However, as the debtor, you have ways to protect your home from legal actions like foreclosure. You need to file bankruptcy.
However, people feel apprehensive about bankruptcy. The stigma around it is the result of the experience of those debtors who approached the case completely unprepared and ill-informed and lost every asset they had. Bankruptcy is a complex world and there are hundreds of rules that govern the bankruptcy procedure. If it is used in the right way, it can prevent foreclosure and buy you time for stabilizing your finances. That is why you need to hire a Pittsburgh bankruptcy lawyer and go ahead with the bankruptcy filing. It can be an excellent tool to manage debts as well as to wipe out unsecured debts. It also offers you provisions to protect your home and assets from liquidation.How to Protect Your Home During Bankruptcy?
Foreclosure is the legal term describing the process of legal action taken by the creditors which will involve selling your house and getting their money back. When you want to delay this, you can go for bankruptcy. Once you file bankruptcy, the court will release an automatic stay that will prevent your creditors from taking any action for the house. For chapter 13, you will get 3-5 years for repayment which will help you stabilize your finances a bit so that you can pay the home loan.
When you are going for Chapter 7 bankruptcy, you can use your federal exemption that will protect your assets including your house and car. And that is the best way to save them from liquidation.
So, now as you know how you can save your home while filing bankruptcy, don’t worry. Rather hire a Pittsburgh bankruptcy lawyer who will explain the process further.