Before filing a bankruptcy claim, make sure that your home is well protected. Filing for bankruptcy doesn't automatically involve losing your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Filing for bankruptcy should not be done on a whim. There are many other options including debt consolidation and making payment plans with your creditors. Various loan plans out there can be a lifesaver if you're facing a foreclosure. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
There are quite a few ways to file for bankruptcy. Don't become overwhelmed by the enormous amount of information available. Take a moment to sort it all out and ponder the tips for a moment. Take your time and think carefully about your decision before taking action.
