Q:  “I am behind on my mortgage payments and I want to keep my house.  I have a decent regular job, but my debt is too much to sustain. Can I keep my home?”

A: You can probably save your house with a Chapter 13 filing.

Q:  “I owe a bunch of money on my house – more than it’s worth, I can’t make the payments anymore.  What are the repercussions of this?”

A:  In Minnesota, most mortgage holders bring judicial foreclosures, which means that they cannot obtain a deficiency judgment, like one would with a car.  It takes about six months for the creditor to complete its action that results in a Sheriff’s sale at the courthouse.  The creditor usually bids in with its interest and gets the property.  If the property is your homestead, you have six months to leave after the sheriff’s sale.  The practical result is that you can live in your house for one year without making any payments.  This can be a significant boost to people. 

Q:  “Can I keep my house?”

A:  The short answer is that if you make a regular income and you can make your monthly payment, then you probably can.  Each case requires individual attention. 

There are many bankruptcy laws and each case is unique.  Call 651-704-9600 for a free attorney consultation.