Chapter 7 vs. Chapter 13: Which is Better for Keeping My Home?

by DeLadurantey Law Office, LLC on July 28, 2014

file721347376166If you have considering filing for bankruptcy protection, it is likely one of your primary concerns is whether you will be able to keep your home. It is important to understand that bankruptcy offers several options that allow debtors to keep possession of their home, either in Chapter 7 or Chapter 13.

One of the first things we need to look at is whether you are past due on your mortgage loan payments. This can help determine whether a Chapter 7 or Chapter 13 will be more beneficial to you.

If you are eligible to file a Chapter 7 (meaning you pass the means test) and you are current on your mortgage payments, you should likely file a Chapter 7 case. The other important factor to consider is how much equity to you have in your home. If your house has significantly more value than what you owe on it, you may not want to file a Chapter 7 case. Your local attorney can help you determine what amount of equity is protected by exemptions to make sure you home remains protected in your filing.

If you are delinquent on your mortgage payments, a Chapter 13 filing may be the better option for you. This type of bankruptcy allows you to submit a repayment plan that lasts for a period of three to five years. You can make payments under the plan that allow you to get caught-up on your mortgage loan.

There are numerous other factors to consider when trying to decide whether a Chapter 7 or Chapter 13 filing is most beneficial to you, but wanting to keep your home should not prevent you from obtaining the debt relief you need. If you are considering filing a personal bankruptcy, let us review your individual finances and help you understand all of your available options and which type of case would help you the most.

At DeLadurantey Law Office, LLC, we help businesses and families find their way out of highly difficult financial situations. We provide the advice and guidance you need in obtaining debt relief through bankruptcy and debt negotiations. We can also assist you in student loan law and defending a foreclosure action. Contact us at 414-377-0518 to discuss how our Milwaukee bankruptcy attorneys can assist you. Like us on Facebook.

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