My Home 

If you're like most homeowners, you may be wondering, "can I file bankruptcy and keep my house?"  In most cases, you can keep your home when you file bankruptcy San Diego, with the help of an experienced bankruptcy lawyer.  Generally, if the equity in your home is covered by your bankruptcy exemptions, or if you have no equity in your home, you will be able to keep your home when you file bankruptcy San Diego.  Of course, you will have to keep making your mortgage payments, but you would have to do that anyway, even if you did not file for bankruptcy relief.  In addition, if you have missed your mortgage payments, your bankruptcy lawyer will have to file a Chapter 13 bankruptcy for you so that you can repay your missed payments.

Can I Keep My Home In Bankruptcy In San Diego

To determine whether you can keep your home when you file bankruptcy, you need to discuss three factors with your lawyer: (1) whether you have equity in your home, based on the value of similar houses for sale in the San Diego area; (2) whether you are on time on your payments; and (3) if you are behind on your payments, whether you are willing to repay your missed payments.

Equity In Home

In order to keep your home in bankruptcy, your equity in your home cannot exceed the amount of equity you are allowed to have under your applicable bankruptcy exemptions.  If you have more equity in your home than your bankruptcy exemptions allow, then your home will be liquidated (sold) and the nonexempt proceeds (the amount that is not covered by your bankruptcy exemptions) will be used to pay your creditors. 

On Time On Payments

If you are on time on your monthly mortgage payments, then you can keep your home in bankruptcy, whether you file under Chapter 7 or Chapter 13, as long as you continue to make your payments and stay current on your home loan debt. 

Your mortgage lender's right to foreclose is dictated by state law, not by bankruptcy law.   If your property is located in San Diego County, or anywhere in the State of California, then your lender cannot foreclose on its deed of trust lien as long as the loan is current, irrespective of whether you have filed bankruptcy.

Behind On Payments

If you behind on your home loan payments and want to keep your house in bankruptcy, you will need the help of an experienced Chapter 13 attorney to help you file a Chapter 13 bankruptcy and repay your missed mortgage payments over a 3 to 5 year repayment plan.  

If you are willing to repay your missed mortgage payments, and your lawyer can help you propose a viable Chapter 13 repayment plan that is accepted by the Court, then you will be able to keep your house in bankruptcy, even if you are behind on your monthly mortgage payments.

By proposing a Chapter 13 plan that brings your mortgage payments current, and by completing that plan, you will effectively be bringing your home loan payments current, so there is no reason for your lender to foreclosure.  Therefore, Chapter 13 can permanently stop foreclosure of your home.

Free Consultation

Call Bankruptcy Legal Center today to set up a free consultation with a bankruptcy lawyer to discuss whether you will be able to keep your house in bankruptcy, and what it will take on your part in order to keep your home when you file bankruptcy San Diego.  Call Us: (800) 44-DEBTS (800-443-3287).