Chapter 7 Bankruptcy and Foreclosure
When an individual has to deal with the prospects of bankruptcy and foreclosure at the same time, he or she may be overwhelmed by subsequently starting over financially and losing his or her home. Luckily, bankruptcy may actually save an individual’s home, at least in the short term.
A Chapter 7 bankruptcy filing can permit you to stay in your home until your bankruptcy proceedings are finalized. For more information and assistance navigating these difficult financial waters, contact the Maryland bankruptcy lawyers of Chaifetz & Coyle, P.C., at 443-546-4608.
Saving Your Home
The common perception is that Chapter 7 bankruptcy requires individuals to liquidate their assets in order to pay off their debts. While this is sometimes a mechanism that is called upon, in many cases, a debtor may not be forced to sell any of his or her property. One’s home is often protected because it is considered to be “exempt” property and therefore not subject to a bankruptcy sale. However, this may not be the case if an individual has already been served with a foreclosure notice.
If an individual is delinquent on payments but has not yet been served with a foreclosure notice, then he or she may be allowed to stay in the home until the bankruptcy proceedings have completed. If the individual can work out a repayment with the mortgage lender, then he or she may be able to keep the home. If not, then he or she will likely have to move out.
The Maryland bankruptcy attorneys of Chaifetz & Coyle, P.C., may be able to help you save your home from foreclosure through bankruptcy. Contact us today at 443-546-4608 to learn more about your legal rights and options.