The decision to file for bankruptcy can change your life in many ways. This is why you don't want to go down this path until you are 100 percent sure that it's the right decision for you at this time.
You are sure to have many questions about the bankruptcy process, with this one among the most important: Will you be able to keep your home after you file?
Unfortunately, there is no "right or wrong" answer to this question. Instead, it depends on a variety of factors:
-- The type of bankruptcy. Generally speaking, you are more likely to keep your home if you file for Chapter 13, as opposed to Chapter 7.
-- Equity. Before you file for bankruptcy, ask yourself this question: how much equity do you have in the home? If you have equity in your home, it's possible that you may be required to sell the property as a means of paying back some or all of your debt.
-- Your mortgage payment. If you keep your home, you'll have to make mortgage payments as required by your lender in the future. Now that you've cleared some of your debt, can you afford to make this payment each month?
These are the types of things to think about when learning more about bankruptcy. You don't want to move forward with Chapter 7 or Chapter 13 until you first understand how this will impact your finances and personal life. This is why you should learn more about the laws associated with bankruptcy, as you don't want to find that you're losing your home when you thought that you could stay put.
Source: FindLaw, "Can I Keep My Home After Filing Bankruptcy?," accessed March 28, 2017