When in a bankruptcy, all of your assets will be frozen. This means that you will be able to go about your business without getting calls from creditors or having your wages garnished. Also, a bankruptcy can prevent a foreclosure on your home. Some filers fall into situations where they can no longer afford to pay their mortgage even during a Chapter 13 bankruptcy. If this is the case in your situation, then you do have the right to walk away from your house and let it go into foreclosure. In order to do this, you will want to consider a few primary factors.

First of all, you will want to consider why you filed for a Chapter 13 bankruptcy in the first place. If you filed to save your home and get caught up on delinquent mortgage payments, and were approved for a loan modification, then your delinquent mortgage payments may have been absorbed. This means that your mortgage is now current, and you may be able to afford living in your home after all. If you qualify for a loan modification, chances are that your income is too high for a Chapter 7 bankruptcy. If this is the case, then you will have to remain in your Chapter 13 and continue making payments to creditors, or you can dismiss the bankruptcy and then work with your creditors directly. This may be the easiest way to handle your situation if you are planning to walk away from property.

If you are eligible for a Chapter 7 bankruptcy, you can also convert your bankruptcy from a Chapter 13 to a Chapter 7. If you want more information on this conversion, it is essential that you talk with a local bankruptcy attorney. Sometimes the conversion process can be lengthy and involve additional paperwork. This will allow you to walk away from property and any other unsecured debts. In some cases, you may even be able to get some payments discharged as a part of this bankruptcy arrangement. Other assets will need to be liquidated, which will make it easier for you to walk away from your home without too much complication.

If you are not eligible for a Chapter 7 and remain in a Chapter 13 bankruptcy, then you will want to stop making your mortgage payment if you intend to foreclose on the home. The lender who is receiving the payments will eventually file a motion with your court to take the property out of bankruptcy protection because of your lack of payments. At this point, you will simply need to agree with the courts and allow the house to be seized. Sometimes this process will take several months up to a year, and other times it will be speedy. This depends on the state that you live in, and how long the average foreclosure process is in your state,

Also, if the lender takes a long time to take the property out of bankruptcy protection, this will slow the process. Also, if the lender offers another loan modification to try and keep you in the home, it may be unnecessary to proceed with the foreclosure. Typically, after foreclosure is filed it will be several months until you are required to move out. If you want more information about foreclosures and bankruptcies, then you need to talk with a local bankruptcy attorney. With the right attorney on your side, you can explore all of the options that are possibilities regarding your home. You have the right to seek assistance in your case today.