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In today’s economic situation, foreclosures are happening in record numbers. As such, one of the most frequent questions we receive from clients is “Can I save my house?” However, for people experiencing financial difficulties, the more applicable question is “Should I save my house?”
Your bankruptcy attorney’s job is to review your complete financial picture and discuss all your options – one of which is whether it is in your financial best interests to remain in your home. Some of the key issues to review when discussing whether to keep or surrender your home are:
In most cases, Chapter 13 bankruptcy can be used to avoid foreclosure and save your home, if that’s the right financial decision. Please contact our office for more information or to schedule a consult to discuss your specific circumstances.
Most people feel that bankruptcy is the very last option and will only consider it after trying everything and anything else – debt negotiation companies that charge huge fees, high interest payday loans, borrowing from retirement accounts, selling personal property, etc. However, what most people don’t know is that some of these actions could actually reduce some or all of the protections and benefits allowed under bankruptcy law.
For example, bankruptcy law allows for individuals to protect qualified retirement plan accounts. This means that generally, these funds will not be available for the court to take to pay creditors and you can protect them during the bankruptcy process. Additionally, if you take a loan against your 401(k) account, it can potentially impact your ability to file as 401(k) loan repayments generally are not considered an allowable expense to reduce your income on the means test calculation. This could result in your means test calculation showing discretionary monthly income greater than it actually is, preventing you from qualifying to file under Chapter 7.
Please contact my office before you begin selling your assets or raiding your retirement plans to discuss whether filing bankruptcy is a good alternative for you.