One of the main concerns of any individual that is going bankrupt whether it is a Chapter 7 or Chapter 13 is what is going to happen to their home. Most individuals have a mortgage on their home and they have the fear that they are going to lose their property as a result of their bankruptcy.
Mortgage Considerations
In a Chapter 13 bankruptcy any money that is owing that is overdue on your mortgage will have to be included in your payment plan. There are several other types of relief that are possibly going to be available concerning your mortgage under the Chapter 13 bankruptcy. For example, if you have a second or third mortgage then these may be removed which means that your home loan debt is not going to be nearly as great as what it was.
Some individuals that have ended up in financial difficulties have done so later in life and have already paid off the mortgage on their home. Their concern is that the bankruptcy court will make them sell their home to clear their debt.
It is not likely the courts will expect you to sell or mortgage your home, but it may end up that you have to pay more to your unsecured creditors. Unsecured creditors are always addressed after the secured creditors. This is the reason that so many lenders ask for some type of security when doing financial dealings.
Your Louisville bankruptcy attorney will guide you and keep you updated as to how your various debts will be handled and discuss your concerns regarding your assets.
