Bankruptcy and Foreclosure: What Happens to Your House and Debt?
If you need to learn how to file bankruptcy and keep my house you’re in the right spot. Are you scared of losing your house? Filing for bankruptcy might help you keep it. Many people don’t know they have options, but this guide will explain everything in simple words. Let’s talk about what happens when you file for bankruptcy and how it can help you save your home.
What Does It Mean to File Bankruptcy?
Bankruptcy is a way to deal with debt when you can’t pay it. It helps stop things like foreclosure, which is when the bank takes your house.
There are two types of bankruptcy that might help you keep your home:
Chapter 7: Clears some debt, but you might lose your house if you’re behind on payments.
Chapter 13: Gives you a plan to catch up on missed payments, so you can keep your house.
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Can You File Bankruptcy and Keep Your House?
Yes, you can! Here’s how:
Chapter 7: You might keep your house if you’re current on payments and the house is not worth too much.
Chapter 13: You can catch up on late payments and stay in your home if you follow the court’s payment plan.
Tip: Talk to a lawyer to find out which type is best for you. Contact us to get a free consultation on how to keep my house.
How Does Bankruptcy Stop Foreclosure?
When you file bankruptcy, something called an automatic stay happens. This means the bank has to stop trying to take your house for a while.
Why This Helps:
You can figure out how to catch up on payments or make other arrangements.
It gives you time to work out a plan.
What Happens to My Mortgage Debt?
Chapter 7: Your personal debt might go away, but the bank can still take the house if you stop paying.
Chapter 13: You keep paying, but the court helps you make a plan to catch up on missed payments.
Important: You must keep paying your mortgage to stay in your house.
Does Bankruptcy Stay on My Credit Report?
Yes, bankruptcy stays on your credit report for:
- 10 years if you file Chapter 7.
- 7 years if you file Chapter 13.
Even though it’s on your record, you can start rebuilding your credit right away.
Can I Get a New Mortgage After Bankruptcy?
Yes, but it takes time:
Chapter 13: You might qualify sooner if you’re making payments on time.
Chapter 7: You may need to wait 2-4 years.
What Should I Do Next?
Ignoring foreclosure could cost you everything—don’t wait until it’s too late.
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Free Foreclosure Resources & Guides
- How To Delay Foreclosure Auctions
- How To Stop Foreclosure Info File Bankruptcy
- FREE Download Foreclosure Secrets Guide
- Visit HUD.gov On Ways To Keep My House
- Visit USA.gov
- How to get out of foreclosure