People often have questions about whether they can file for bankruptcy if they’re behind on their house payments. Well, the answer is a resounding yes. However, determining the most suitable type of bankruptcy for your specific circumstances requires a discussion with your attorney.
For instance, if your primary goal is to retain ownership of your home, a Chapter 13 bankruptcy may be the optimal choice. Under Chapter 13, you can resume or continue making regular monthly payments while also incorporating a Chapter 13 “plan payment.” This plan payment allows you to gradually catch up on any missed payments over a period of 3 to 5 years. This approach works best when the reason for falling behind on your house payments was a temporary setback, and you’re now capable of getting back on track with a little extra time.
On the other hand, if you no longer wish to keep the house, Chapter 7 bankruptcy may be a more suitable option. With Chapter 7, you have the opportunity to surrender the property to the bank as part of the bankruptcy process and discharge the mortgage, including any outstanding payments.
If you’re facing mortgage arrears and contemplating bankruptcy, it’s advisable to consult a knowledgeable bankruptcy attorney who can evaluate your specific goals and circumstances. They will provide invaluable guidance throughout the process, ensuring you make well-informed decisions.
Remember, each situation is unique, so don’t hesitate to seek the assistance of a qualified bankruptcy attorney who can offer personalized advice. They will be your reliable partner, helping you navigate the complexities and make the best choices for your financial future. If you need a bankruptcy attorney, contact Davis Miles McGuire Gardner today at 480-730-6800 and ask for Preston Gardner. We’re here to help!