How Do You Know If You Should File For Chapter 7 Bankruptcy?

Making the decision about whether to file for Chapter 7 bankruptcy is not always completely clear, and that is why many people turn to a lawyer for help with this decision. While there are times when you might not know if this is the best option, there are several different factors you should evaluate that may help you determine if this is really the best way for you to get out of debt, and here are some of them.

Conditions That Allow You To Keep Car And House In Chapter 7 Bankruptcy

One of the risks you face when filing for Chapter 7 bankruptcy is being forced to turn over assets that you have, and this can even include a house and car. While this occurs in some situations, it does not always happen. There are many situations in which people are able to keep both their home and car when filing for Chapter 7, and here are the conditions that will affect your ability to keep your house and car.

What To Do If Your Home Is Approaching Foreclosure

Once you start missing your mortgage payments, your lender reserves the right to foreclose on your home. Though your loan is technically in default after missing a single payment, most lenders don’t start foreclosure proceedings until your loan is 90 days overdue. The entire foreclosure process takes a lengthy amount of time to complete; in some states, it might be years before your home is officially foreclosed on. However, don’t let yourself be lulled into inaction by thinking you have plenty of time to save your home or find alternative living arrangements.