Foreclosure is increasing at an alarming rate in the U.S. While the federal government is concerned about people losing their home, little attention is paid to the fact that for many people saving their home might not be the right option at all. With Chapter 13 bankruptcy, it is possible to protect your dwelling place. But is that the right thing to do irrespective of your situation? Let’s discuss. When you consider debt relief programs, you should weigh all your options including the justification of keeping your home. People in financial trouble sometimes ask the wrong questions to themselves or their attorneys. For instance, they raise questions like if it is possible to avoid foreclosure or whether the lender will respond to their plea or can they file chapter 13 bankruptcy to save their home etc. However, we should use “should we” instead of “can we”. We need to make the most suitable choice on the basis of logic and not emotions.

It is wise to consider the following things to decide if it is viable to save your home or not:

  • If you have more than one mortgage then you should carefully calculate whether you can make the large mortgage payments every month or not.
  • In some cases the interest rate on the mortgage is not fixed. This is a tricky situation. You might presently think that the mortgage payments are affordable. But the interest rate might increase in the future and things can very well get out of control.
  • Calculate if your house has any equity on it. Many p eople do not have any equity on their home and some have actually negative equity. This means the value of your home is less than what you owe. In that case giving in to foreclosure is the right option.
  • If you do not plan to stay in the current house throughout your life then you might let it go. The extra money that you will have can be used for some useful purposes like your child’s education.

Do you know that it is possible to file chapter 13 bankruptcy and still surrender your home? To be aware of options like this you should consult an experienced bankruptcy lawyer early enough and know your choices.

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