Is my family a factor when filing for bankruptcy?

Knowing you are in an overwhelming amount of debt is stressful. While you may have moments where you think you can get back on top, there are times when you need help with your debt.

When you are supporting a family, finding relief from your debt can seem impossible. You may fear losing your house or having to sell assets that you and your family count on to live your lives.

Here’s what you should know about filing for bankruptcy when you have a family.

You don’t have to lose your house

Depending on your situation and the type of bankruptcy you file, it may be possible to keep your home. Bankruptcy is a way to get a fresh start if you are struggling with debt. While you may need to sell some of your assets to pay off part of your debt, the process is not intended to leave you with nothing.

Keeping your house is potentially an option for both Chapter 7 and Chapter 13 bankruptcy. Still, it is more likely that you will be able to keep your home if you are filing Chapter 13. In addition to the type of bankruptcy you file, the trustee on your case will also look at the equity you have in your house and whether you can continue to afford your mortgage.

Budget fit for a family

Bankruptcy is about finding a solution for both you and your debtors. Ideally, bankruptcy can help you restructure your debt, so you can still pay, but at a more comfortable rate. In some cases, however, you may be able to eliminate some of your debt through bankruptcy.

When deciding what solution will work best for your situation, the trustee will look at the needs of you and your family. A budget to help you care for your family will be an essential part of your bankruptcy process.

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