Bankruptcy after bought a house?

Question

I bought a house a few months ago and i am really in a massive debt now, so far i have paid all my payment on time. if I file a bankruptcy will i loose my house as i am in negative equity on it anyway

Answer 1

You can contact a local bankruptcy attorney in your area, most will see you on a free consultation. The will need to look at your income from the last 6 months, assets, a list of all your debts and last 4 years of taxes. Once they review that information they will be able to tell you what you qualify for. Bankruptcy should be your last resort. Your debts are on your credit report for 7 years, the bankruptcy filing for 10 years. In both chapter 7 and chapter 13 filings, you are allowed to keep the home, but a chapter 7 (total discharge) you would have to be current on the loans to re-affirm on the loan (continue to pay per the norm), and basically discharge the other debts. A good attorney will advise you what you need to do. I would seek as the other posters stated and find a financial advisor, gather all your paperwork and see what information you can find out. Good Luck!

Answer 2

There are several chapters of bankruptcy. A good attorney will help you determine which chapter is right for you, if you choose this route.

Talking with a financial adviser

would be a good first step to determine if bankruptcy is right for you. The financial adviser may also be able to help you determine if keeping the house is to your benefit or if you should surrender it.  

Answer 3

No, you don't have to lose your house.  But it really is up to you if you want to keep the house.  You can say I cant afford the house and you will have to surrender this to the bankruptcy court.  Also it's very likely filling in this year that you may have to surrender a large portion of your income tax return.  This will also damage your credit, but since you already said that you are in a lot of debt, your credit is already damaged by the debt to income ratio.  Make sure though you get a good attorney because in the long run it will hurt you if you don't.  But before going to file bankrupt, talk to an credit adviser and talk about your other options.  If may save you from a bankruptcy and save you money.