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Dec
20
Leaving a Home is Chapter 13 Bankruptcy

Leaving a Home is Chapter 13 Bankruptcy

On behalf of Law Offices of Chad M. Hayward, P.C. posted in Chapter 13 Bankruptcy on Friday, December 20, 2013.

Most people who file Chapter 13 bankruptcy do so to save their home; however, there are some instances in which walking away from the home during the bankruptcy process might be necessary. Cook County residents might be interested in learning about some of the options when it comes to whether or not to walk away from a home during bankruptcy.

One way that you can leave your home is to convert to a Chapter 7 bankruptcy. You will have to meet the eligibility requirements if you plan on doing this. By converting to Chapter 7 bankruptcy, you can leave the property and your unsecured debts.

If you absolutely can’t make any mortgage payments and are unable to convert to a Chapter 7 bankruptcy, you can usually still walk away from the home. In this case, you can simply stop making the payments on the property. Eventually, the mortgage company will file to get the home out of the bankruptcy to begin the foreclosure process. In some cases, the mortgage company may offer you a loan modification to allow you to keep your home.

There is no definite time limit for how long it will take for the mortgage company to begin the entire process of getting the home out of bankruptcy and starting foreclosure proceedings. There is also no set time frame for the entire process to finish. In the interim, it might be possible for you to stay in your home without making payments.

If you are considering walking away from your home while you are in Chapter 13 bankruptcy, getting the advice of an experienced Chicago personal bankruptcy lawyer might prove helpful.

Source: Bankrate.com, “Can I Walk Away From Home in Bankruptcy?” Justin Harelik, Dec. 11, 2013


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Locations

We have office locations throughout the Chicago Area:

Chicago (Downtown)

Schaumburg

Oak Brook

Naperville


All calls are routed through our Downtown office for your convenience.

Phone: 312-967-3159

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