Most homeowners who file for bankruptcy are at least a few months behind on their mortgage payments and are struggling to pay other essentials such groceries and utilities. When filing for bankruptcy a debtor needs to decide if they want to or even if it is financially feasible to retain their home.
These are the questions homeowners considering bankruptcy should ask themselves:
- Can I afford to make payments on my back mortgage payments AND my current mortgage payments?
- What sacrifices am I willing to make to keep my house?
- Are there other home-related expenses that strain my budget and may make it difficult to repay back mortgage payments in bankruptcy? Maintenance, high water bill, expensive to heat or cool?
When a debtor files for Chapter 13 bankruptcy he/she is required to make payments to the bankruptcy trustee to "cure" the amount of the mortgage that is delinquent AND he/she must continue to pay the regular mortgage in full and on time. Any debtor considering bankruptcy to retain their home needs to consider how this requirement will impact their other financial obligations.
To find out more about bankruptcy, contact Dallas-Fort Worth bankruptcy attorney today.