Surrendering your home is an option if you plan to file for Chapter 7 bankruptcy. There are various reasons and benefits for taking this action. Before you make a decision as to whether or not surrendering your home is best for you, consider the following.
What Is Surrendering Your Home?
The loan that you have from your mortgage lender is considered to be secured debt. This basically means that your lender has a lien against the home until you have completely paid off your mortgage loan.
Being in a financial bind can create a great deal of stress in your life. If you are suffering a job loss or a significant change in your income, you may need to consider filing for a Chapter 7 bankruptcy. Being able to achieve this legal status may help you get many of your debts discharged. However, it is equally important to know what this type of bankruptcy won't achieve for you.
Bankruptcy is a heartbreaking procedure that affects thousands of Americans every year. Moving on from this procedure takes a lot of patience, hard work and a little guts. However, if you stick to this basic plan, you should get your life (and your sanity) back on track in no time.
Keep Paperwork
After you're done filing, make sure to hold on to your paperwork for the length of your bankruptcy. Why?
