Bankruptcy and What Happens When You Surrender Your Home

July 21, 2010 - PRLog -- Surrendering your home in Chapter 13 bankruptcy is often a difficult decision. Many debtors in Chapter 13 bankrutpcy have filed case in attempt to save their home and making the decision to surrender their home is very difficult.

This decision is usually more familiar to debtors that are currently under adjustable rate mortgage loan (ARM). The struggle to maintain a consistent budget is not simple when you have your monthly mortgage payment increasing every 6 – 9 months. Chapter 13 plan payment has been set and utilities bills are contiually on the rise. This leaves the debtor in financial stress forcing many Chapter 13 debtors opting to surrender the home the worked so hard to keep.

Many of these debtor are eligble for conversion to Chapter 7 bankruptcy case. Others who have vehicle creditors being paid in plan can file plan modification to reduce monthly plan payment or term of plan.

In short, though surrendering your home is an emotional choice, sometimes it is the only choice.

I just do not understand were this though came from,” If I file a bankruptcy I do not have to pay for my house.” The statement is true no you don’t have to pay for your house if you do not want too but You need to move out. The balance on a house or car has to be paid if you want to keep it. The bankruptcy takes care of unsecured debts credit cards, medical bills, cars that were reposed, and houses that were surrender or already for-closed on.
True if your doing a chapter 13 you may not be making a car payment to the loan company directly but you still have to pay for the car through the plan. If you were behind on your house the back payment will be put in the plan but starting the following month you make your normal house payment to the mortgage company. At the end of the 3 to 5 years what you were behind will have been paid to the mortgage company and the balance of your loan will need to be continued to be paid till it is paid off.

For more information visit http://www.bankrupcy-alternative.com/refiling-bankruptcy-... or call us directly. Here is another bankruptcy article http://www.prlog.org/10809237-bankruptcy-chapter-13-wage-... and here is another http://www.prlog.org/10806963-bankruptcy-credit-counselin... for your reading enjoyment.

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