Keeping Your Home in a Bankruptcy

An attorneys, we often get asked if keeping a home is possible for a Chapter 7 or a Chapter 13 Bankruptcy filing in Denver.  The short answer is YES.  Why?  The goal of a bankruptcy filing is to allow for a “fresh start” in dire financial circumstances.  If the home in Denver is taken away along with the other assets, that leaves very little room for any hope of getting back on your feet again.  Of course, there are limitations to this, if you owe $30,000 and own a $2,000,000 home, the odds of getting a bankruptcy through the courts would be zero.  The fact that you may be able to keep these does not mean that you must keep them.  A bankruptcy attorney can help you wade through the options.

In certain cases, the homes value in Denver or the car’s value is far less than it is worth and in these cases a client would be better off to not to reaffirm a debt.  The mortgage company will want their debt reaffirmed on the original note and if the home’s value has dropped substantially, it may be best not to reaffirm these debts.  Also, if your income has drastically changed from when you first purchased your home, leading to this position in the first place, this is another reason such a debt may be better off included with your Chapter 7 or Chapter 13 filing.  If all of this is confusing, consider using one of our highly qualified attorneys to help you through this diffivcult time.