Bankruptcy is overwhelming. The decision to file can be a difficult one to come to terms with and it often leaves you with so many unknowns. How does this work? What does this mean for my life? Will I lose my home?
Bankruptcy can stop foreclosure
Filing for Chapter 13 bankruptcy can actually be a way to stop foreclosure on your home. As long as you have enough income to continue mortgage payments and cover a five-year repayment period, you will likely be able to keep your home.
Is my house considered exempt property?
If you file Chapter 7 bankruptcy, you will need to determine what pieces of your property are exempt or not exempt from sale. In New York, some property is exempt because it is under a certain value. This property you are able to keep when you file bankruptcy. Your equity in your home can be up to $10,000 as a single person for your house to be exempt, but if you file with a spouse it may double. If your home is exempt, you will likely not lose it.
It can be tricky to know what you can and cannot keep when you file bankruptcy and to understand exactly what the process will look like. You should always talk with a legal professional when you are deciding if filing for bankruptcy is right for you. They will help walk you through your options and determine which chapter you should file.