Can Bankruptcy Save My House And Car?
When you are behind on your bills, one thought looms over all others: What if I lose the house?
The bankruptcy lawyers at The Law Offices of Arnold S. Levine, work with homeowners to avoid foreclosure and repossession. There are several effective ways to come at the foreclosure problem, but the primary tool is bankruptcy. Bankruptcy can bring foreclosure to a halt if three factors are in place:
1. You choose to file Chapter 13. Chapter 13 nullifies foreclosure, because it allows you to reschedule mortgage debt payments and catch up. Within an hour of filing, an automatic stay goes into effect. So long as the house has not actually been sold, you have the power to stop it.
2. You take advantage of Ohio’s bankruptcy exemptions. Chapter 7 can also call a halt to mortgage foreclosure, as part of the automatic stay — but it is less powerful against foreclosure over the long term. If you opt for Chapter 7, and you owe your house outright, it is probably exempt from liquidation.
3. You don’t own too much of your home as equity. This applies to Chapter 7. If the home is underwater, the bankruptcy trustee probably won’t want to liquidate it. But the lender who holds your mortgage may opt to foreclose on it.
Our attorneys have many lines of foreclosure defense they can discuss with you, some not involving bankruptcy at all.
Your Car Is Safe, Up To A Point
The law knows you need to get around if you are to get financially healthy again. Under Chapter 7 you are allowed to exempt your car from liquidation, provided it is not of great value.
Chapter 13 is clearly superior to Chapter 7 for foreclosure defense. Chapter 7 is usually very strong for keeping your car and other household possessions. Most of our Chapter 7 clients lose nothing at all in liquidation.
Bankruptcy Needn’t Break The Bank!
Can bankruptcy save your house and car? Yes, it can, and we can find a way to do it so that it is affordable. We have clients who pay us for our time filing Chapter 7, paying as little as $40 a week.