Helping You Make The Right Decision For Your Long-Term Financial Health
A common reason why many people avoid considering bankruptcy as a solution to unmanageable debt is the fear of being pushed out of their family homes. That’s understandable, and it’s true that not everyone can remain in their homes while restarting their financial lives through bankruptcy. However, many others discover that it is possible.
If you are experiencing symptoms that make you feel like bankruptcy is imminent, avoiding addressing the possibility is not a long-term solution. In fact, it typically creates more problems. If you wait until you receive a foreclosure notice from your mortgage provider, it may be too late. The smarter decision is to work with attorney Dallas Janssen at Janssen Law, PLC, in Des Moines. He will review your situation and do everything possible to keep you in your home if that is a priority.
Some Factors That Will Help You Stay In Your Home
Because bankruptcy is designed to provide you with a fresh start, federal and state bankruptcy laws include exemptions that allow you to hold onto assets as long as they don’t exceed certain values. In a Chapter 7 bankruptcy, you probably will reaffirm a home mortgage debt. That places the creditor in the same position that it was in at the time of the filing of Chapter 7. But you need to be current on your home mortgage loan to reaffirm the debt.
If you are behind on making your home mortgage payments and want to keep your home, you should consider filing a Chapter 13 bankruptcy. In this type of bankruptcy, you are allowed to place the delinquent mortgage payments into the plan of reorganization and pay them over a three- to five-year period. You also must pay the current mortgage payments on time.
Of course, you must have sufficient income to afford your monthly mortgage following your bankruptcy to stay in your home. This may be possible since you will discharge your other unsecured debts through the bankruptcy process. If your income will not allow you to make your mortgage payment, it may be a smarter decision to discharge your mortgage debt through bankruptcy as well. After all, the ultimate goal is to reset your financial life and eliminate the stress of unmanageable debt.
Other Ways To Resolve Unmanageable Mortgage Debt
If missed mortgage payments are the extent of your debt problem, you may be able to resolve the situation without filing for bankruptcy. Mr. Janssen can help you explore the possibility of modifying your home loan or obtaining a forbearance agreement that will allow you catch up on missed payments.
Arranging a short sale or a deed in lieu of foreclosure will not allow you to remain in your home, but it may provide for a dignified exit and help you avoid bankruptcy.
Work With A Lawyer To Clarify Your Options
As you can see, the question of whether you will be able to stay in your home and resolve your financial problems is a complex one. You must weigh that objective against the larger goal of rebuilding a strong financial foundation. The best way to get a clear sense of your options is to speak with a knowledgeable attorney like Mr. Janssen.
He invites you to schedule a free, one-hour consultation in which he will answer your questions, review your situation and provide a candid assessment. Call 844-879-2839 or use the online contact form to schedule a meeting. Mr. Janssen works with clients throughout Polk County and all of central Iowa from his office in Des Moines.
Janssen Law, PLC, is a debt relief agency. Attorney Dallas Janssen helps people file for bankruptcy relief under the Bankruptcy Code.