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dkennedy, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6009
Experience:  15+ years experience
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I would like to understand the risks of filing bankruptcy to

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I would like to understand the risks of filing bankruptcy to help me get "out from under" a house I am under water on. It is not my main residence, now, but it was when I bought it. I can't refinance it, because the value has declined so far and I owe too much on it. I'm stuck with a high interest loan that I cant do anthing about. I've recently married and moved in with my new wife in her house, and we would like to stop paying for a house we aren't using. Is bankruptcy an option for me?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  dkennedy replied 5 years ago.


It's hard to just say "yes" or "no" to whether a bankruptcy is right for you. And, then there are several types of bankruptcy like Ch. 7 and Ch. 13. The "new" rules require you be below a certain median income and other things. But, if you mean (and I think you do) is bankruptcy a good way to get out from under this house, I would say generally yes, it is. A Chapter 7 is what we used to call a liquidation bankruptcy. If you meet the other requirements, the trustee would take over your house, sell it or whatever. You would have no deficiency judgment.

One of the best things, also, is that once you get your things together and get the bankruptcy filed, there is an automatic stay which stops creditors from collecting from you so you don't have to worry about that for a while. Sort of a "breather".

You might check out some web sites with general info on bankruptcy and just see how your circumstances fit. Then, gather all your paperwork together and make an appointment with a bankruptcy attorney.

Good luck to you!

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