20th Feb 2017

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I am often asked the important question of whether a person will lose their home if they file bankruptcy.  As long as you reside in the home or intend to move back into the home in the near future, you can exempt the home as a protected asset.  Exemptions are used in bankruptcy to protect certain items of property from being taken away.  We have the option of using either federal exemptions or Texas exemptions, depending on which would be more beneficial to you.

 

So, back to the question.  If you live in the house and you are current on the payments and will continue to make the payments, you can keep the house.  It is an exempt asset.  If you are behind on payments and are filing a Chapter 7, it is likely that the mortgage company will try and lift the protection of bankruptcy from the house so that they can foreclose if you do not become current.

 

Thus, if you are behind on payments, it is generally better to file a Chapter 13 bankruptcy, which is a payment plan type of bankruptcy where you can bring your payments current over a 5 year catch up plan.  This is usually the best option if you are behind.

 

Bottom line is that your house is protected and you can keep it in bankruptcy.  If you want to discuss this topic further, please contact me at 281-847-4345 or rkemsley@kemsleylaw.com so we can discuss your individual situation and see if Chapter 7 or Chapter 13 would work for you.  The consultation is free and we will review your situation, determine whether you qualify to file and answer your questions.  Don’t put off your dreams and goals of becoming debt free.  Take the first step by calling me today.  I look forward to hearing from you soon.

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