Preserving Your Home Equity Through Chapter 13 Bankruptcy
If you’re a homeowner considering bankruptcy, one of your top priorities may be to keep your home. Your home might be your most significant asset. You may have made numerous improvements to your home over the years, building sweat equity. Your home might also play a big role in your retirement and estate plan, and is a way to keep your family comfortable and safe.
How can you keep your home – and equity – while pursuing bankruptcy? Thankfully, there is a way to do it, and we can help. At The Law Office of Donald L. Bell, you will find a family-oriented attorney dedicated to protecting your family in the bankruptcy process. He offers the experience and insight necessary to navigate bankruptcy proceedings that protect your hard-earned homeownership.
How Chapter 13 Can Help You Keep Your Home in Maryland
Many people fell behind on mortgage payments following the COVID-19 pandemic. Other stressors, such as divorce and medical conditions, can also cause financial burdens. Homeowners facing significant debt – such as credit card debt and medical bills – can benefit from filing for Chapter 13 bankruptcy. Here’s how:
- Debt discharge: Chapter 13 establishes an affordable three- to five-year repayment plan. After you successfully complete that plan, any remaining eligible debts will be wiped away (discharged).
- Foreclosure prevention: Filing bankruptcy puts an immediate stop to foreclosure proceedings.
- Mortgage modifications: Our lawyer can help you pursue more favorable mortgage terms that make your payments more affordable. Many mortgage companies offer “loss mitigation” options to help you get caught up on payments. However, it’s easy to get scammed if you explore these options on your own, and it can be an overwhelming process. Our bankruptcy attorney can handle it for you.
- Second mortgage removal: Through Chapter 13, you may be able to get rid of a second mortgage, such as a home equity loan. This option is called “lien stripping.”
As you can see, there are many upsides to pursuing Chapter 13 bankruptcy if you’re a homeowner struggling with debt.
Think Ahead To Protect Your Home Investment
Many people wait until they get a foreclosure letter to start exploring bankruptcy. It’s better to start pursuing bankruptcy before you’re on the brink of foreclosure. Chapter 13 can prevent the initiation of foreclosure proceedings against you.
What About Your Estate Plan?
If you own a home and don’t have an estate plan, then we can help you with that, too. An estate plan can help you keep your assets (including your home) in your family. The bankruptcy process is a good time to revisit your long-term financial goals as well as your retirement and estate planning goals, keeping within your current financial framework.
Learn More About Your Options With A Free Consultation
To talk with an experienced Maryland bankruptcy attorney about your options for keeping your home through bankruptcy, please contact us online or call 240-624-0748. We’re conveniently located in Greenbelt, Maryland.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.