How To Declare Bankruptcy And Retain Your Home

How To Declare Bankruptcy And Retain Your Home "The process of personal bankruptcy can be one of the most effective methods for debtors to eliminate substantial amounts of debt, but it also carries with it significant consequences. Filing for bankruptcy can be distressing and time-consuming, as well as expensive. Perhaps the most significant consequence of filing for bankruptcy is that your precious assets may be at risk. Due to this, many debtors avoid the process entirely out of dread that their home and other assets will be seized. It is possible to apply for bankruptcy and keep these valuable assets. This article will explain how to declare bankruptcy while retaining your residence.There are essentially only two options when it comes to declaring bankruptcy: Chapter 7 or Chapter 13. Although Chapter 7 bankruptcy is the most prevalent option, it can put your assets at risk. Chapter 7 bankruptcy, also known as ""liquidation bankruptcy,"" utilizes your assets to repay your creditors through a liquidation process. Chapter 7 can help you eliminate substantial portions of your debt, but at a significant cost.If you don't want to put your assets and property at risk, you should strongly consider filing for Chapter 13 bankruptcy. Chapter 13, also known as ""reorganization bankruptcy,"" enables wage-earning individuals to repay their creditors over a period of three to five years through a structured repayment plan. A debtor can also keep their residence through Chapter 13 if they maintain on-time payments throughout the duration of the process.Consult the United States Courts website for additional information on Chapter 13 bankruptcy. Alternately, you can arrange a free initial consultation with a reputable local attorney. Initial consultations are an excellent opportunity to learn more about the procedure and to become acquainted with a particular attorney.
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