Can I Keep My House in Bankruptcy

Oct 14, 2019 | Bankruptcy, New Jersey Foreclosure Defense

Yes, You Can Keep Your House in Bankruptcy

A common question that we’re asked quite frequently asked is, “Whether or not a person that’s in the process of filing for bankruptcy is going to be able to keep their home.”The quick answer to that is, “Yes. In many situations you’ll be able to keep your home.” However, there are different types of bankruptcies.

How a Chapter 13 Bankruptcy can Save a Home.

In chapter 13, which is basically a restructuring of your debts, it allows homeowners to keep their home. Assuming the homeowner is able to meet the payment requirements associated and laid out in the chapter 13 plan. A Chapter 13 bankruptcy will let you repay all of your debts through a repayment plan over a period of three to five years based on your income.  Under certain circumstances you will only have to repay a portion of your debts.

Normally in a best case, people are able to keep their Cars, and homes in a chapter 13 bankruptcy as long as they can repay their back owed debts while in bankruptcy and keep current on all of their monthly bills as they come due.

There are even certain types of debts that are discharged in a chapter 13 bankruptcy that would not be discharged in a chapter 7 bankruptcy. If you have questions, please contact one of our bankruptcy lawyers to go over all of your specific needs before you file for bankruptcy for free.  Knowing your rights related to your debt and mortgage even while in foreclosure can help you in the long term.  This is not just a solution for 2019 or 2020 this is a lifetime solution that you are looking at to keep your home.

Under a chapter 13 bankruptcy your creditors will have to receive as much as they would under a chapter 7 bankruptcy filing.

Can a Chapter 7 Bankruptcy Save a Home?

In chapter 7 bankruptcy, which is a liquidation of debts and assets, it means that your home may be subject to sale depending on how much equity is in your home. Equity is basically treated like money at the end of the day.  If you do not prepare for a chapter 7 bankruptcy prior to filing, you may be required to sell your home in a chapter 7 bankruptcy. Or more specifically the chapter 7 trustee will sell your home to cash out your equity to pay your creditors. Equity exemptions differ for each state and the homeowner will be given a choice as to using Federal or State exemptions.

State exemptions vary by state and even County at time.  For instance in New York the state exemptions are:

  • $170,825 in Bronx, Kings, Nassau, New York, Putnam, Queens, Richmond, Rockland, Suffolk, and  Westchester counties.
  • $142,350 in Albany, Columbia, Dutchess, Orange, Saratoga, and Ulster counties, and
  • $85,400 in all of the other counties in New York State. See CVP § 5206

In New Jersey the federal exemptions are at time more beneficial to the homeowner than the state Exemptions. Using the federal or state exemptions depends on your situation and location as can be seen when comparing New York to New Jersey bankruptcy exemptions.

Exemptions do not just apply to a bankruptcy filers home.  Exemptions apply to all types of property under the exemptions laws. People are able to apply exemptions to cash, autos, jewelry and retirement funds to name a few items.

A chapter 7 bankruptcy discharge will also allow you to discharge loans, repossession deficiencies, credit card debt, medical debt.  Filing a bankruptcy will  also stop repossessions, stop a wage garnishment, get rid of personal income tax over 3 years old. This is not a temporary solution.  It is a real permanent way to lose debt. Chapter 7 bankruptcy may be a better solution.

Don’t take our word for it, read the reviews from our clients to find out about the service we have provided our clients. You can stop high interest loans, get debt relief, save your real estate. Professional planning can help you manage your secure loans and ensure all of your accounts are take care of. If you need legal advice we ill walk you through all of your options.

Please, Talk to a Consumer Credit Attorney before you file for either a Chapter 7 or Chapter 13 Bankruptcy

Please, Talk to a Consumer Credit Attorney before you file for bankruptcy to understand what type of loans , and other lines of credit you have that would be forgiven in a chapter 7 bankruptcy or a chapter 13 bankruptcy.  A bankruptcy lawyer would rather talk to you prior to filing for bankruptcy than after filing for bankruptcy when issues may arise. No matter what company you keep, or how much credit card debt you have. Talking to an attorney for free can’t hurt. Between the amount of knowledge it takes to understand to file for a bankruptcy to save a home and the amount of bad information on the web.  You need to reach outside of the internet and relying on websites to make an informed decision about your rights to save your home.

All of your personal options should be discussed with one of our experienced bankruptcy attorneys. Who will be able to guide you through the process. To help you work towards your goal of keeping your home. We value your privacy and the privacy of your family.  It is our policy to keep all maters discussed with one of our bankruptcy attorneys confidential.  Knowing your legal rights is important.  You can not always rely on blog articles or financial websites to get the most current information related to bankruptcy law or foreclosure law practice.

Tips to Consider Before Filling for Bankruptcy

There are a few tips you should consider before filling a chapter 7:

  1. Understand how you your home is held.  For instance if you own your home as Tenant-by-the-Entirety with your spouse. You may be able to exempt the entire equity balance in a chapter 7 bankruptcy.
  2. Know your homes resale value.  Understand that once you are in foreclosure, any number of people will start offering what they consider “The Best Offer” for your home, however they may be trying to undercut the market and steal your equity.
  3. Understand if you can afford your mortgage payments. It is not our business to provide information people want to here, put explain the tough calls some people have to make. Our web site is designed to provide information, but you have to be able to provide information about your income to your bank so that they can see if you can afford to make your mortgage payments.
  4. Understand how the automatic stay will protect your rights. So creditors cant come after you while you are in bankruptcy.  The automatic stays protection can even extend to your co-borrowers.
  5. Even if you feel you do not owe too much, you still are entitled to use bankruptcy court to enforce your rights against your lenders.

While the above is not a complete list of potential issues that can come up during a bankruptcy or even a list of all options to consider, It gives you an idea of the potential risks associated with filing a chapter 7 bankruptcy when you are unable to enforce your rights. No mater what you owe, our firm would like to help.  It is good idea to have legal representation before filing for bankruptcy. If you choose not to hire us, we recommend you search for the best attorney for you to get the relief that you need.

The value of having a trusted and experienced bankruptcy  attorney on your side to help you navigate the foreclosure process and advise you at every step of your way far outweighs the small cost of paying for legal representation in if something goes wrong after you have filed for bankruptcy, or if you do not have a strategy together to maximize the value of your home. If you have any questions regarding the purchase or sell of your home please call my firm at 973-200-1111 to speak with a Foreclosure / Bankruptcy attorney or visit our calendar app to schedule an appointment online. may also contact us by email at

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