Whether or not you can keep your home when you file an Elkhorn Chapter 7 Bankruptcy is a question we get asked often. The answer to this question is yes, if you meet certain criteria.
First, it is important to note that if you wish to keep your home, you may do so by reaffirming the debt. To reaffirm a debt in an Elkhorn Chapter 7 Bankruptcy, you must sign a Reaffirmation Agreement. Signing a Reaffirmation Agreement means that you will be responsible for the debt after your bankruptcy is discharged. In other words, the debt is exempt from being wiped out because you wish to keep your home and agree to continue paying on the debt. After your Elkhorn Chapter 7 Bankruptcy, you will be responsible for the mortgage debt and agree to make your monthly payments. Your mortgage payments must also be current for most lenders to give you the opportunity to reaffirm your mortgage. If you are behind on your mortgage payments and you wish to keep your home by reaffirming your mortgage debt, you must bring the mortgage payments current.
Can Anyone Reaffirm a Mortgage When Filing an Elkhorn Chapter 7 Bankruptcy?
When filing an Elkhorn Chapter 7 Bankruptcy, you can selectively choose which secure debts you wish to keep and wish secure debts you wish to “let go”. However, to be eligible for mortgage reaffirmation, you must not be behind on your mortgage payments. If your mortgage payments are behind, you must bring them current in order to reaffirm your mortgage debt and keep your home. Also, please note that in an Elkhorn Chapter 7 Bankruptcy case, Wisconsin law states that up to $75,000 of equity in your home is exempt from creditor claims if you are an individual filing. This amount doubles to $150,000 when a married couple files an Elkhorn Chapter 7 Bankruptcy together.
It is also important to note that you will only need to protect the equity in your home. For example, if the current value of your home is $100,000 and you still owe $90,000 on your mortgage, you have $10,000 in equity in your home that is easily protected using Wisconsin law. Contact our Elkhorn Chapter 7 Bankruptcy attorney to discuss exemptions, liens, collateral and other particulars of your Chapter 7 bankruptcy case and to learn more about keeping your home.
Is An Elkhorn Chapter 7 Bankruptcy Right For Me?
You certainly have many options to consider and many questions to be answered: Should you reaffirm your mortgage debt? Does it make sense to keep your home? Are you behind on your mortgage and by how many months? How much equity do you currently have in your home and is it protected? Is Chapter 13 Bankruptcy a better option? If, after discussing your particular situation with our Elkhorn Chapter 7 Bankruptcy lawyer, you decide a Chapter 7 Bankruptcy is not going to protect your assets as you wish, you may want to discuss other options, such as filing a Chapter 13 Bankruptcy. Our experienced Elkhorn Chapter 7 bankruptcy lawyer will help you determine the best solution to your financial dilemma. Contact our bankruptcy law office today by phone at 262-725-0175 or by email via our bankruptcy contact page to find out if an Elkhorn Chapter 7 Bankruptcy is the right option for you.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
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