Can I go bankrupt and keep my house? That question is the foremost question on the mind of those who are contemplating filing for bankruptcy. They already know that they need to file for bankruptcy and that it is the only way out for all of their financial problems, but what’s keeping them from taking the needed step, is the fear that they might lose the house that they have worked so hard for in the process. So, is this really the case? Do you really have to lose your house when you file for bankruptcy?
The good news is that one need not lose their home when they go bankrupt. You just have to know the options that are open to you.
The best option for those who would like to file bankruptcy and still keep their house is to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to pay off all of your debts within a set period. The payments that you will be making will fall under the supervision of a trustee from the court. Here are the steps on how you can file for Chapter 13 Bankruptcy:
1. Get a petition for Chapter 13 bankruptcy. You can get this from the office of the clerk of the bankruptcy court, or you can download it from the Internet.
2. Fill in all the information required in the petition. It comes with detailed instructions on how you can accomplish it. Make sure that you will not be leaving any blank spaces on the form. When the clerk of the court sees that there are blank spaces on the form they will return it. If a part of the form does not apply to you or your situation, make sure that you write N/A there, so that the one who will check will not think that you missed out on any part of the form.
3. After completing the form, go ahead and file it at the office of the clerk of the bankruptcy court and pay the necessary fee.
4.When you have filled the petition, your next step will be to come up with a Chapter 13 bankruptcy plan. There are forms for this type of plan. You will have to write down information like your monthly income and your expenses. This will help determine the amount that you can set aside each month as payment for your plan.
5. Make sure to include your house or your car as part of your obligations. This is a necessary step in order to make sure that you can keep them.
6. Submit the plan to the trustee assigned by the court. They will check it and once they approve it, the payment plan starts. Make sure that you make payments on time and keep up with it until you have finished your plan and payments completely.
Filing for Chapter 13 bankruptcy can help you keep your home, but you have to asses your situation if doing so is really in your best interest. Be honest with yourself and think if you can really meet the obligations of monthly payments through the plan that the court will come up with. There is more information available online as well as from your local court clerk’s office to help you assess what kind of payments you might need to make in order to fulfill your obligations under this process while at the same time keeping your home.