This is one of the most common questions that clients ask: Whether they will be able to keep their home if they file for Chapter 7 bankruptcy protection.
Yes, it is possible to keep your home under a homestead exemption, under certain circumstances. Under both federal and state laws, there is an allowance for certain property to be exempt from sale during a bankruptcy proceeding. One of these exemptions is for your home. If the equity in your home is less than or equal to the homestead exemption applicable to you (depending on what state you live in), then the bankruptcy trustee will not sell your house to repay your creditors.
One thing to keep in mind is that you must continue to make the mortgage payment in order to keep your home. If the equity in your home exceeds the homestead exemption amount or if you are behind on your mortgage payments, then you may have to file for bankruptcy protection under Chapter 13 instead of Chapter 7, in order to keep your home.
Your bankruptcy attorney will be able to assist you in determining the best way to keep your home during the bankruptcy process. Please contact our office for more information or to discuss how we can help you.
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Yes, one spouse can file for bankruptcy protection without bringing the other spouse into the bankruptcy action.
However, an additional question that should be considered is “Should I file bankruptcy without my spouse filing?” In answering this question, there are some issues you should consider before moving forward, including, the fact that:
Everyone’s situation is unique and should be treated as such. Because of this, unfortunately, there is no “one-size-fits-all” answer to filing bankruptcy.
Just because it is possible to do something doesn’t mean that it is a good idea to do it. Consulting with a bankruptcy attorney can provide guidance on what avenue is best for your particular situation.
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More and more people these days are struggling to continue making their mortgage payments for a variety of reasons including job loss, decreasing real estate values, and increasing mortgage payments due to an Adjustable Rate Mortgage (ARM). However, foreclosure is not the only option available for people who are having problems meeting their mortgage payment.
The answer to whether you wish to stay in your home (and can afford to do so) or whether you wish to move presents differing options to consider.
Some of the options available if you wish to keep your home include:
Some of the options available if you wish to give up your home:
Your individual situation will determine which option is the best path for you to follow. You should work with an attorney to review your specific circumstances and needs in order to get the best possible outcome. Please contact our office for more information or to speak with an attorney.
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With the worsening economy, more and more people are having a difficult time meeting their mortgage payments. Inevitably it seems, where there are people in trouble there are con artists looking to cash in on other people’s problems. According to the Federal Bureau of Investigation (FBI), there were a total of 62,494 mortgage fraud suspicious activity reports in Fiscal Year 2008 with $1.4 billion in losses. Illinois is ranked #8 in the list of states with significant fraud problems.
The U.S. Department of Housing and Urban Development (HUD) has articles on some of the scams that are currently being used on homeowners, such as conning homeowners into signing over their home (see information at www.hud.gov). Additionally, the FBI released an article on how to avoid becoming a victim of mortgage fraud . In response to the growing problem of mortgage fraud, Illinois has enacted The Mortgage Rescue Fraud Act, which governs mortgage modification companies. Based on this law, there have been numerous investigations into these companies by the Attorney General for fraud and other misconduct .
Before working with any company to modify your mortgage or stop foreclosure on your home, be sure to investigate the company thoroughly. Because there are so many scams out there, never sign a document with reading and understanding what you are signing. If you need assistance understanding the document, talk to an attorney.
Generally, student loans are not dischargeable in bankruptcy, unless repaying the student loan causes an “undue hardship”. Unfortunately, meeting the standard of undue hardship can be very difficult. Most courts use a three-part test to determine whether an undue hardship exists:
Please contact our office to discuss your specific circumstances or to receive additional information about your options under bankruptcy