Keeping Your Home

Bankruptcy and Keeping Your Home

When a bank is about to take your home through foreclosure, filing bankruptcy is the obvious solution in many cases.  Georgia has a nonjudicial foreclosure system which makes it extremely easy for a bank to take your home in 4 weeks if you don’t do anything to stop them.

What Happens During the Foreclosure Process?

In Georgia, the bank will advertise your house in the local newspaper for 4 weeks before the foreclosure date.  During this time, most people will receive tons of letters from bankruptcy attorneys and the bank. Do not ignore your mailbox during this time.  If you choose to file bankruptcy, your attorney will need to know the name of the law firm that is trying to foreclose.

Do not wait until the last second.  Do not let some well meaning banker lead you on with the promise of “I will get a you loan modification.”  Once your house is foreclosed on the courthouse steps, there is nothing you can do to get it back.

Two Types of Bankruptcy

Most people who file bankruptcy to save their home will file a Chapter 13.  Chapter 13 allows you to take all of the arrears you owe and spread them out over a monthly payment that is affordable to you.

The only time a person should use Chapter 7 to stop a foreclosure is when the regular monthly payment is too high and there is equity in the house.  In a case like this, the Chapter 7 trustee will put the house up for sale shortly after the case is filed. Once the house is sold, the debtor will get paid any exemption amount claimed ($21,500.00 for an individual and $43,000.00 for a married couple).

If there is no equity in the house and you want to let it get foreclosed, you will almost never have to worry about paying any deficiency unless you have a second mortgage.  For more information on this, read this blog post https://www.kellycanhelp.com/blog/do-i-need-to-file-bankruptcy-in-georgia-if-i-am-willing-to-let-my-house-get-foreclosed/

Contacting an Attorney Can Help

When facing foreclosure, finding the right bankruptcy lawyer will make all the difference to protecting your rights. Since each situation comes with its own set of challenges, only an experienced attorney can assess your options, and provide you with the best strategy to regain control over your debt.

The Law Office of Jeffrey B. Kelly can help with your legal needs from the first time you file a motion all the way through bankruptcy court. Call (770) 809-3099 for a consultation to begin your process and discover your best path to financial recovery.