Struggling with debt is never easy. It can be frustrating to work through these financial troubles, but for some, these troubles only get worse with time. Unfortunately, no matter what one does, the overwhelming debt plaguing an individual or family in Georgia and elsewhere will not go away on its own. Whether it is due to a job loss, injury, illness or other financial catastrophe, for some the only real debt solution is filing for bankruptcy.
While many are deterred from filing for Chapter 7 bankruptcy because they are fearful of what they may lose in the process, the reality is that this process is designed to assist those that require a fresh financial start in order to manage their debt. And because one could potentially lose their house, vehicle and other personal property, it is important to understand what can be done to minimize what one has to sell off in order to pay off debts.
Can you keep your house in a Chapter 7 bankruptcy? If a house is in foreclosure, one way to stop the process and keep one’s home is to file for a Chapter 13 bankruptcy instead of Chapter 7 bankruptcy. However, it is still possible to keep one’s home in a Chapter 7 bankruptcy, at least for some time. For example, debtors may be able to claim a homestead exemption in a Chapter 7 bankruptcy.
Another way to keep a mortgaged home in a Chapter 7 bankruptcy is by reaffirming the home’s mortgage loan. This allows the filer to exclude the home completely from the process. While the upside is that one gets to keep their home, the downside is that if one falls back into foreclosure, his or her credit could be damaged again.
Filing for bankruptcy requires a lot of decision-making. Thus, it is vital to understand the process and what options one might have. This not only protects the rights of the filer but also their interests in the matters as well.