How bankruptcy handles Home Retention?

How Bankruptcy Handles Homes Retention?
Law office of Malik Ahmad offers free consultation to prospective bankruptcy clients]
This is almost a continuous question as each of my client asks this invariably every time they meet me and of course on a non stop basis. “Can I keep my home”?

Of course, you can keep you home, if you file Chapter 7 bankruptcy or Chapter 13. Home is an exempted property, especially if you have filed homestead under Nevada laws. But this retention is temporary until the opposing lender’s counsel request a motion to lift stay. Invariable, the opposing counsel files a motion to lift stay and invariable it is accepted. Now, you are back to square one and is open to these vultures again, subject of course again, to foreclosure.
Rule No. 1
Do you wish you keep your home? Are you able to pay the mortgage and continue with the pre bankruptcy obligation? If that is the case, you can keep the home. You may down the road request loan modification, but that is a different case. First, if you wish to keep your home, you’re going to have to be able to pay the mortgage. You have three choices after you file the bankruptcy.
-You can surrender the property and have no obligations to pay anyone.
-You can reaffirm the debt, and continue making the payments and still like to assure your lender that such payments would be made as agreed before.
-However, sometimes, when a homeowner is already underwater on their first mortgage, a second or third mortgage can be modified or stripped under Chapter 13.

Rule No. 2.
Let us say you can afford your mortgage, the bankruptcy process would let you keep the home via Nevada exemption. In Nevada, the homestead exemption is $550,000. If you have equity up to $550,000, you can keep your home and safeguard against creditors. A home is at risk of being liquidated in a chapter 7 bankruptcy in Nevada only if there when there is non-exempt equity which exceeds the amount allowed to be protected under Nevada state or federal law. Again, we mean primary home here.

1. Again in Nevada, it is not uncommon to file a chapter 7, AND NOT REAFFIRM ON THE HOUSE, thus discharging the debtor’s personal liability, but continue to make the house payments and continue to live in the house. The advantage to this, from the debtor’s view, is that if the debtor later is unable to pay for the house, the creditor can repossess it through foreclosure, but the personal liability of the debtor is extinguished and down the road the lender cannot come back and sue for deficiency.
2. That takes care of the deficiency issue in Nevada. We have heard of this omnipresent issue all the time, and a bankruptcy resolves this lingering issue.

Advertisements

38 Comments

  1. Just desire to say your article is as astounding.
    The clarity in your post is just excellent and i can assume
    you’re an expert on this subject. Fine with your permission allow me to grab your feed to keep updated with forthcoming post. Thanks a million and please continue the rewarding work.

  2. hi!,I really like your writing so a lot! percentage
    we communicate extra approximately your article on AOL? I require a specialist on this house to unravel my problem.

    May be that’s you! Taking a look forward to see you.

  3. We absolutely love your blog and find a lot of your post’s to be exactly I’m looking for.

    can you offer guest writers to write content for you? I wouldn’t mind writing a post or elaborating on most of the subjects you write in relation to here. Again, awesome website!

  4. Have you ever considered creating an ebook or
    guest authoring on other sites? I have a blog centered on the same
    ideas you discuss and would really like to have you share some stories/information.

    I know my visitors would appreciate your work.

    If you are even remotely interested, feel free to send me an e-mail.

  5. I’ve been exploring for a little bit for any high quality articles or weblog posts
    on this sort of area . Exploring in Yahoo I at last
    stumbled upon this web site. Reading this info So i’m happy
    to exhibit that I’ve an incredibly good uncanny
    feeling I came upon just what I needed. I such a lot no doubt will make certain to do not fail to remember this
    web site and give it a look on a constant basis.

  6. Hi there, I discovered your web site by way of Google while searching for a related subject, your web
    site got here up, it looks great. I have bookmarked it in my google bookmarks.

    Hi there, just become aware of your blog via Google,
    and located that it is truly informative. I am going to
    be careful for brussels. I’ll be grateful when you proceed this in future.
    A lot of folks shall be benefited from your writing.
    Cheers!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s