Will filing for bankruptcy save your home? In most circumstances, the answer is yes. The filing of a bankruptcy petition operates as an automatic stay, thereby preventing the sale of your home at sheriff sale. Under Chapter 13 bankruptcy, a plan of reorganization is proposed to allow you time to bring your mortgage arrears current. The plan may last from 36 to 60 months. Another benefit to filing Chapter 13 is that your mortgage company must begin accepting mortgage payments from you after the bankruptcy has been filed.
Are you able to discharge your student loan and federal income tax obligations? The answer to this question depends on the unique circumstances of your matter. Generally, student loan obligation will not be discharged unless a hardship can be established. Federal income taxes must meet certain criteria before they may be discharged. A case-by-case analysis must be undertaken before an opinion can be rendered. It is strongly recommended that you consult with our attorneys as soon as possible to discuss all options.