Getting a clearer picture of the advantages and disadvantages of filing for bankruptcy can help you decide whether filing is the right choice for you. It can also help you decide if you should reaffirm your mortgage during a bankruptcy.
Reaffirming your mortgage during bankruptcy
During bankruptcy, you may be asked by your mortgage lender if you want to reaffirm your mortgage. You may be able to negotiate a lower interest rate or modify the terms of your mortgage. The lender also has the right to foreclose if you do not make payments.
Reaffirming your mortgage isn’t something that everyone does, and you may want to consult with an attorney before you make the decision. Reaffirming your mortgage can have many advantages, but it also comes with several disadvantages.
You must get court approval before you can reaffirm your mortgage. Your lender will need to know the reason you want to reaffirm your mortgage. This can be a tough process. You will need to make a case to the bankruptcy judge and convince him or her that you need to reaffirm your mortgage.
You will have to negotiate a complex multi-page reaffirmation agreement. You will need to have your attorney sign the agreement. Your attorney will also need to certify that the reaffirmation agreement won’t cause you undue hardship.
You should not reaffirm your mortgage if you cannot afford your mortgage payments. Your lender will take legal action against you for a deficiency judgment. This can result in taxes on the loss as an income. You can still keep your home, but you will not be able to sell it.
Protecting exempt property from creditors in Chapter 7 bankruptcies
During Chapter 7 bankruptcy, most of your property can be saved. The amount you can keep depends on the exemptions you qualify for.
To get a better idea of what exemptions are, you should consult a bankruptcy attorney. He or she can help you determine which exemptions are applicable to you and explain what they mean.
You can use bankruptcy exemptions to protect essential property like your house or car. A house or car can be an important asset to take your children to school or run errands. Likewise, a computer or TV can be a necessary tool for your job. Exemptions can also help you keep some retirement accounts or other important items.
There are two types of bankruptcy exemptions: federal and state. You may be able to choose between the two, depending on where you live. In most cases, you can use the state exemptions in Chapter 7 bankruptcy. However, if you live in different
states for different periods of time, you may not qualify for the federal exemptions.
In Chapter 7 bankruptcy, the trustee may sell non-exempt property in order to pay off your creditors. The trustee may also choose to deem the property not worth selling. The value of your non-exempt property will determine whether you’re able to keep it or not.
Loss of property from bankruptcies
Having a bankruptcy can have many negative consequences, including loss of property. However, there are some bankruptcy situations where it is possible to keep some property.
Exemptions are important to understand because they determine what you can keep. They can range from state-specific to federal laws. You may be able to keep a house, for example. However, you may not be able to keep a car.
Bankruptcy can also affect other people’s finances. For example, if you have a car backed by a lien, your creditor may be able to repossess it during bankruptcy.
In Chapter 7 bankruptcy, you will be able to keep a car and other property that is necessary for your day to day living, but you will be required to sell other property. This is to help repay your debt.
You can also keep a house in Chapter 7 bankruptcy. You may be required to give up a portion of it to your lender, but the equity in your home is safe. In Chapter 13 bankruptcy, you can keep your house, but you will have to pay back your debt in three to five years.
There are also exemptions in Chapter 13 that you can take advantage of. You may be able to keep unused items in your house such as furniture. However, the value of these items may be lower than the replacement cost.For more information, consult with a bankruptcy attorney in Harrisburg, PA and get all the correct information and resources you need.