' 3 Benefits of Bankruptcy for Homeowners - Law Offices of Robert M. Geller, P.A.
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

3 Benefits of Bankruptcy for Homeowners

can they take your home if you file for bankruptcyCan they take your home if you file for bankruptcy?

Are you worried about what’s going to happen if you can’t pay your mortgage?

For example, can they take your home if you file for bankruptcy?

Bankruptcy is one of the most powerful tools you have when faced with significant debt. However, many people avoid filing due to concern they’ll lose their homes.

Fortunately, there are many cases in which bankruptcy helps you prevent the loss of your home.

What are three ways bankruptcy provides relief to homeowners?

1. Protects Your Home

If you’re worried they can take your home if you file for bankruptcy, it’s time to contact an attorney.

When you file for bankruptcy, something called an “automatic stay” goes into effect.

The automatic stay works to protect you from foreclosure. This important tool shuts down the foreclosure process and other collection efforts by creditors.

For example, if your home is about to be foreclosed due to an unpaid second mortgage, filing for bankruptcy stops the foreclosure until your case is completed.

2. Discharges Debt

In addition to stopping foreclosure proceedings, filing for bankruptcy can also result in discharge. Indirectly, this can help you keep your home because you’ll have more money to put toward your mortgage payments.

3. Improves Loan Terms

Even if it is not possible to discharge your mortgage debt, bankruptcy may allow you to renegotiate the terms of your loan. If you have missed several payments or are facing default, your lender will be more inclined to make a deal.

You might also be able to use something known as a cramdown to improve your situation.

Can They Take Your Home If You File for Bankruptcy?

The loss of your home is less likely when you work with an experienced bankruptcy attorney.

If it has been less than 14 days since receiving a foreclosure notice, you’ll need to file an emergency motion to reset the hearing date. Contact an attorney ASAP and share all of the paperwork related to your situation, including:

  • Summons and complaint
  • Affidavits of service
  • Mortgage paperwork
  • Notices from the bank

It’s important that you not contact your mortgage lender directly about your bankruptcy. Once you file, the lender has limits regarding what they can and cannot do. If they try to contact you or get you to agree to anything, you should refer them to your attorney.

If it has been more than 14 days since receiving foreclosure papers, you’ll need to file an answer to the complaint. This is a written response that you file with the court in which you state your defense to the foreclosure action.

If you’re concerned they might take your home if you file for bankruptcy or if you’re unable to get caught up on your mortgage, you need to speak to an attorney. Contact the Law Offices of Robert M. Geller at 813-254-5696.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Will Bankruptcy Affect My 401k?

Bankruptcy can be a difficult decision. It’s one that has long-lasting effects on your financial future. One question that often...
Read More

Can Filing for Bankruptcy Affect Your Job?

Filing for bankruptcy can be a challenging decision that is fraught with many concerns. Among them is the fear that...
Read More

Can You Cancel a Bankruptcy?

Bankruptcy is an option that can save individuals and businesses from financial ruin. However, the process can be a long...
Read More

Does Bankruptcy Clear Child Support Arrears?

Bankruptcy is a legal process that provides relief to individuals who cannot pay their debts. One common question among individuals...
Read More

Is Alimony Dischargeable in Bankruptcy?

One of the biggest concerns that people have when considering bankruptcy is the effect on their financial obligations, including spousal...
Read More

Should You File Bankruptcy Before or After Divorce?

Marriage and finances can be a tricky combination. Timing is also an issue when it comes to filing for bankruptcy....
Read More

What’s Better Bankruptcy or Debt Settlement?

The idea of being trapped in debt can be overwhelming and all-consuming. Financial struggles can happen to anyone through no...
Read More

Can I Keep One Credit Card During Bankruptcy?

The decision to file for bankruptcy is never easy. People considering this option often struggle with financial stress, debts, and...
Read More

How Does Inflation Affect Credit Card Debt?

Credit card debt can be overwhelming. This is especially true during times of inflation. What is Inflation? Inflation is a...
Read More

Can Personal Bankruptcy Affect My Business?

If you’re a business owner considering filing for bankruptcy, it’s important to understand how this decision impacts your business. From...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions