Can Filing Bankruptcy Save Your Home Sweet Home?

For most of us, our home is our sanctuary, the place where we can finally relax and make ourselves as ugly as possible after a long day of dealing with our jobs, our responsibilities, and the rough outside world in general. We like to be the kings and queens of our castles, to rule our own realms. We take offense when people trespass onto our lawns. We are naturally territorial, ready to spring into action to defend our sacred abodes, by force if necessary. It’s the American Dream to become a member of the Happy Homeowner’s Club. But what do we do when a bad situation threatens to turn that dream into a nightmare? One minute you’re a two-income family raising your three kids; the next minute your spouse has barely survived a life-changing car wreck, and the mounting medical bills are making it impossible to feed your family and keep the lights on while you try to hold it together as the sole breadwinner. If a person needs to file bankruptcy to save his family from a bad financial situation, does the family have to lose their home too?

Contrary to what you may have heard, it is actually possible to file a bankruptcy case but keep your home. In fact, it’s also possible to file for Chapter 7 bankruptcy protection and wipe your unsecured debt-slate clean, while saving your hard-earned home. 

Every person’s ability to keep his home even when filing bankruptcy will be different – for instance, how much equity is in the home? Is he current on his mortgage payments? Will he be able to continue making the mortgage payments on time? These, along with a list of other factors, will determine what type of bankruptcy a person can file and whether he can keep his beloved home. 

Debt can be overwhelming. A great number of American marriages disintegrate due to problems that began as financial strains but snowballed into emotional distance, extramarital affairs, and broken hearts. If trying to stay on top of your debts is beginning to make you feel like a hamster on a wheel, take care of yourself and your family by finding out what your financial options are. After all, there’s no place like home – let’s figure out how to keep your family safe in it.