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Can I keep my home in a Chapter 7?

When people think of Missouri or Illinois bankruptcy, they typically think of “straight bankruptcy” or a Chapter 7. This chapter of bankruptcy is a powerful tool that can eliminate your unsecured debts in a matter of months. A Chapter 13, on the other hand, allows you to reorganize your debts by repaying certain creditors over a period of 3 to 5 years. When a consumer starts to look at bankruptcy as an option, they start to worry about whether they can keep their property or not.

You can keep your property in a Chapter 7 in Missouri or Illinois as long as you continue to make payments on the debt that is secured by that property, i.e., your car loan and as long the equity can be protected. Also, you must “reaffirm” on the debt. This is just a fancy way of saying that you must make a legally enforceable promise that you will continue to make payments to the creditor under the terms of your original contract in return for keeping the house or car that is attached to the loan.

If, however, you are behind on your house payments or car payments, you may want to look into other solutions. Sure, you can make up your back house payments, reaffirm the debt, and continue to pay your mortgage…but do you want to? Is that helping your situation? If your mortgage is the payment that is making your budget impossible than a Chapter 13 bankruptcy may be the right option for you.

A Missouri or Illinois Chapter 13 bankruptcy allows you to reorganize your debt and get back on your feet. In addition to providing protection from foreclosure, a Missouri or Illinois Chapter 13 bankruptcy allows you to catch up any back payments and late fees that you may owe to your mortgage company.

One of the greatest things about hiring a St. Louis bankruptcy attorney is that he or she can help you protect the property you want to keep by putting together a plan to reorganize the debt that you owe and gives you an opportunity to save your home that you might not be able to get outside of a Chapter 13 case. If you are not sure if a Missouri or Illinois Chapter 7 or Chapter 13 is the best option for you, your Missouri or Illinois bankruptcy lawyer can help you evaluate those things that are most important to you and protect you from losing them.

This is often one point where people who are attempting to file on their own tend to get very frustrated. It is very difficult to come up with a plan that allows you to keep your property when you are without the help and guidance of a St. Louis bankruptcy attorney.

If you are still wondering “Should I file bankruptcy?” or trying to decide which chapter is best to save your home, you can get all the free information you need by requesting a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

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