subject: Will I Have To Give Up My House In A Chapter 7? [print this page] A Chapter 7 in Missouri or Illinois is what people typically think of for a bankruptcy. It is a "straight" bankruptcy, meaning your unsecured debts can be eliminated in as little as 90 days. A Chapter 13 is actually reorganization, allowing you to repay certain creditors over a longer period of time, and is typically for people who have more property that they want to keep.
So, if you want to keep your house, which chapter is better for you? In a Chapter 7, keeping your home is an obtainable goal. For that to happen, you must reaffirm the debt you already have and press on with your payments. A reaffirmation is an agreement with the lender that allows you to continue to pay the debt under the original conditions. In return, you get to keep your property.
What if you are behind on your home loan? You may want to look into a Chapter 13 bankruptcy as a better option. You can include missed payments and late fees in a Chapter 13 payment plan and ensure that your family is protected from foreclosure.
If you still want to file a Chapter 7, you can make up your back payments and reaffirm to pay the debt but it may not be the best decision for you. If your house payment is the kink in your budget wheel, will it help you to keep paying it as is? Take a long, honest look at your financial position. Don't undervalue the great benefit you and your family might get from a Chapter 13.
Choosing between Chapter 7 and Chapter 13 isn't easy if you are doing it all on your own. If you have chosen to file with a St. Louis bankruptcy lawyer, he or she can help you evaluate where you're at, where you want to be, and which chapter can get you there. If you are still set on filing bankruptcy on your own, do right by yourself and yoru family and gather all the information you need for an informed, educated decision. You wouldn't want to go through the entire bankruptcy process only to found that you haven't done everything you could have to help yourself.
How can you find the right information to make an educated decision? Look for free articles, blogs, bankruptcy FAQ, and even free publications to learn all you can about the bankruptcy process. Don't forget, the most important thing you can do for your family is to make a decision with all the facts in mind.
