I Can’t Make My House Payments – Will Bankruptcy Allow Me to Keep My House?
If you have fallen behind on house payments, there are usually options available to prevent foreclosure. Most lenders will try to work with you to avoid foreclosure—after all, they want the debt to be paid, and trying to prepare a foreclosed home for sale is a hassle for them. However, in some cases, you may find yourself facing foreclosure if you simply cannot make house payments. In this case, you may be asking yourself: will bankruptcy will allow me to keep my house?
Bankruptcy Pros and Cons
Bankruptcy is complicated, and keeping your home in bankruptcy depends upon many factors: bankruptcy type, your employment status, income, your other assets, mortgage balance, other debts, etc. Filing for Chapter 13 bankruptcy is the option for you if you are behind on your house payments, but you have a job and can catch up on the payments if given a little time. Under Chapter 13 bankruptcy, you must propose a 3-5-year plan to repay your debts and pay off all or most of what you owe during that time period. Only those who have a regular source of income (that is sufficient to bring the mortgage current within a relatively short period of time, plus contribute to the repayment of other outstanding debts) may file Chapter 13 bankruptcy.
Bankruptcy is not an easy solution, however. All of your cash and income is committed over the Chapter 13 period, which lasts for three to five years. You are then committed to attend and keep up with bankruptcy court proceedings for that same time period. You will need a lawyer to help you negotiate this lengthy bankruptcy process, and lawyers are expensive. Be prepared to spend between $2,000-$5,000 on legal fees, depending on the complexity of your case and where you live. A bankruptcy stays on your credit history for seven to ten years. So, forget about borrowing money for a while. And don’t forget, if you stop making your house payments for any reason during the Chapter 13 period, you will lose your house.
Why Not Sell Your Home Instead?
There are other avenues you can take besides bankruptcy to avoid home foreclosure. In some instances, you may find it best to sell the home, salvage your as much equity as you can (and your credit rating) and move on to more affordable housing.
If your house payments are simply not affordable, don’t file for bankruptcy. Instead, consider selling your home to a home investor. Home investors like SellMyHomeToday.com buy homes all over North Texas from sellers who want to sell for a variety of reasons. Some just want to avoid the hassle of realtor showings. Others want to sell a rental home or an inherited home and don’t want to bother making repairs. Others are relocating and need to get their equity out fast so they can buy a house in another city.
No matter the reason, you can sell your house today, for cash, with no hassle, and avoid the nightmare of foreclosure or the scourge of bankruptcy. Why not recoup your losses and prevent the hit to your credit that bankruptcy will cause? Contact us today at SellMyHomeToday.com and make an appointment for us to come see your home. We will make you a fair offer on the spot and you can pay off your loan and move on to bigger and better endeavors.