Bankruptcy with two homes

Which bankruptcy for me?
Can I file bankruptcy with two homes?

A reader just asked can I file bankruptcy with two homes?  Short answer is yes you can file bankruptcy with two homes.  However it may or may not be in your best interest to do so.  If you already have payments that are behind on the homes upon filing bankruptcy the court will place an automatic stay on the properties for you. Until that stay is lifted, the mortgage company cannot initiate foreclosure proceedings on the homes. Upon removal of the stay, they can proceed to foreclose on your home as normal. If you are planning to keep the homes you will need to follow certain procedures to reaffirm your debt with the mortgage provider.  Another thing you and your attorney will need to consider is the impact of the homestead exemption laws for your state and if they will be appropriate for your situation.  If you are contemplating filing bankruptcy with two homes I highly recommend you file with an experienced attorney since one small mistake could cost you both homes.  In Utah the Bankruptcy Guy can help – give us a call for a free consultation.

If you are behind on your mortgage payments prior to filing bankruptcy you will need to set up the payment arrangements and receive financial communication from them. The mortgage company is going to require several documents to help determine your eligibility for one of the repayment plans they offer to help with your past due payments if that is even an option in your case. Usually it is best to file Chapter 13 bankruptcy if you behind on the mortgage payments to insure you can keep the property.

If you do a work out or payment arrangement in a Chapter 7 bankruptcy once the repayment plan is put into effect, you will need to make sure you don’t miss payments or it will void the agreement. Once the past due is paid, you will be able to sign the reaffirmation agreement for your home. In short, you will not have to worry about forgoing your home if you decide to keep it. You are in control of whether you want to give the home to the lender or reaffirm your agreement with them, regardless of how many homes you have.  Source:



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