Bankruptcy

Can I Keep My House If I File For Chapter 7 Bankruptcy?

By Kevin Gipson, New Orleans Bankruptcy Attorney

You can keep your house in a Chapter 7 bankruptcy if you are current on your mortgage.

 If you are current on the mortgage, you can continue to pay the secured debt in a Chapter 7 bankruptcy while getting rid of your unsecured debt such as credit card debts.

 If you are behind on your mortgage and don?t want to keep the house, then you can surrender the house to the creditor in a bankruptcy.

By surrendering a home to your creditor in a Chapter 7 bankruptcy you limit your financial exposure to the creditor to the amount that they can get from selling the home.

The decision on whether to keep a house is one that should be made only after consulting with an experienced bankruptcy attorney like the ones found here on the Bankruptcy Law Network.

Full post as published by Bankruptcy Law Network on January 23, 2010 (boomark / email).