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Minnesota Bankruptcy Attorney

Need Legal Help to Avoid Losing a Home in Minnesota?

Serving Minneapolis, St. Paul, Bloomington, Edina, St. Louis Park, and Roseville

The Minnesota Bankruptcy attorneys at Neff Law Firm, P.A., understand the common fear that debtors have of losing his or her home. These experienced twin cities bankruptcy attorneys have helped may people to avoid losing their homes through foreclosure.

Causes for Loss of a House

Minnesota Lawyers Experienced in Helping Consumers Facing Foreclosure

There are causes for the loss of house that must not be ignored. The fear of losing it all may be greater than reality. It is sometimes the case that consumers avoid taking helpful financial steps because they are paralyzed with fear such as losing their house in a bankruptcy. Some people may put off trying to proceed with a bankruptcy out of the fear that it would bring about an automatic loss of their house, which is not an appropriate way to look at the situation. Filing bankruptcy does not automatically cause someone to lose his or her house. Each situation calls for its own approach so a consumer should have a comprehensive review done of his or her financial picture to determine whether he or she may be able to keep ownership of a home subsequent to filing for bankruptcy relief. It is not uncommon for a person to keep a house when he or she agrees with, for example, a mortgage company to reaffirm the mortgage and/or other related liens on their property. Proceeding under Chapter 13 may also allow curing mortgage defaults. It is also possible if an eligible homeowner is able to get debt relief by discharging those debts that are dischargeable, it may make it easier for the consumer to then make a required monthly mortgage payment. Financial problems may get further aggravated by not attending to them in a timely manner. Failure to act in a timely manner may limit the options available to the homeowner. For example, if a consumer waits too long, the mortgage default may get so large that it is not curable through a Chapter 13 plan. Some consumers may be inclined to take a loan against exempt assets, such as their 401K, in order to pay down debt and/or try to catch up on missed mortgage payments, which may only compound the problem. Where there is a 401K loan, the consumer may suffer from penalties for early withdrawal as well as having to pay taxes on the amount borrowed from the 401K. Further compounding the situation is the fact that the addition of the 401K payments to the overall debt load often pushes the homeowner into using his or her credit cards to supplement the loss of disposable income due to the added 401K payments now necessary to pay back the loan. Where a consumer does a timely filed bankruptcy it may save both the home and the 401K funds. By filing a Chapter 13, an eligible consumer may be able to preserve their home by curing the mortgage default and restructure the unsecured debt through the Chapter 13 plan rather than taking loans on or liquidating their 401K plan. In situations, where consumers qualify for a chapter 7 bankruptcy, consumers may be able to discharge the dischargeable debt that is making it difficult to meet the monthly mortgage obligation and avoid falling behind on the mortgage payments in the first place and preserve their 401K funds for retirement.

Minnesota Debt Relief Attorney

A Minnesota debt relief attorney from the Neff Law Firm, P.A.'s, Roseville office in Ramsey County, or from the Edina office in Hennepin county can meet in person with a consumer and go over all relevant financial matters to help evaluate his or her potential for avoiding the loss of a home. These twin cities debt relief attorneys have decades of experience helping consumers to avoid losing a home.

By Filing Bankruptcy Will I Lose My Home?

The Minnesota bankruptcy attorneys at Neff Law Firm, P.A., have decades of experience helping consumers who face the prospect of losing a home. It is understood by these skilled bankruptcy lawyers that a person not only needs the home for shelter, but that it may also have significant financial and sentimental value for them. To many people their home is the most valuable asset they own. It is important that consumers who face losing a house get accurate information and where possible move in a timely and efficient manner to protect their rights. Some people when facing the loss of a home fear exploring the bankruptcy option based on the misconception that by filing bankruptcy he or she would automatically lose a home. Filing bankruptcy does not cause a debtor to automatically lose a home. A debtor who finds he or she is in jeopardy of losing a home should expeditiously meet with a qualified bankruptcy lawyer who can evaluate the situation and see what can be done legally to help the debtor keep his or home. In some cases, qualified debtors may be able to keep home ownership by the timely filing of a bankruptcy.

Fear of Losing Home Ownership

What Can be Done Legally to Prevent the Loss of a Home?

The fear of a person losing his or her home is common. Despite danger signals of an impending loss of a home some people, however, still bury their head in the sand and do nothing to prevent it. Sometimes this is because the consumer believes that the loss is inevitable and that there is nothing that can be done about it. The fear of losing it all may be greater than reality. It is sometimes the case that consumers also avoid taking helpful financial steps to prevent the loss of a house because they wrongly believe that filing a bankruptcy will automatically cause them to lose their home. Whether a consumer does nothing about losing a home because they are paralyzed with fear or put off trying to proceed with a bankruptcy out of the fear that it would bring about an automatic loss of their home, it is not the appropriate way to look at the situation. Consumers should in a timely manner review all available options for debt relief. Filing bankruptcy does not automatically cause someone to lose his or her home. Each situation calls for its own approach so a consumer should have a comprehensive review done of his or her financial picture to determine whether he or she may be able to keep ownership of a home subsequent to filing for bankruptcy relief.

Ways to Preserve Home Ownership

Would Filing Bankruptcy Help Prevent Losing A Home?

It is not uncommon for a person to keep a home when he or she agrees with, for example, a mortgage company to reaffirm the mortgage and/or other related liens on their property in bankruptcy. Proceeding under Chapter 13 may also allow curing mortgage defaults. It is also possible if an eligible homeowner is able to get debt relief by discharging those debts that are dischargeable which may make it easier for the consumer to then make a required monthly mortgage payment. Financial problems may get further aggravated by not attending to them in a timely manner. Failure to act in a timely manner may limit the options available to the homeowner. For example, if a consumer waits too long, the mortgage default may get so large that it is not curable through a Chapter 13 plan. Some consumers may be inclined to take a loan against exempt assets, such as their 401K, in order to pay down debt and/or try to catch up on missed mortgage payments, which may only compound the problem. Where there is a 401K loan the consumer may suffer from penalties for early withdrawal as well as having to pay taxes on the amount borrowed from the 401K. Further compounding the situation is the fact that the addition of the 401K payments to the over-all debt load often pushes the homeowner into using his or her credit cards to supplement the loss of disposable income due to the added 401K payments now necessary to pay back the loan. Where a consumer does a timely filed bankruptcy it may save both the home and the 401K funds.

By filing a Chapter 13, an eligible consumer may be able to preserve their home by curing the mortgage default and restructure the unsecured debt through the Chapter 13 plan rather than taking loans on or liquidating their 401K plan. In situations where consumers qualify for a chapter 7 bankruptcy, consumers may be able to discharge the dischargeable debt that is making it difficult to meet the monthly mortgage obligation and avoid falling behind on the mortgage payments in the first place and preserve their 401K funds for retirement.

Minnesota Debt Relief Attorneys

Neff Law Firm, P.A.'s, Minnesota debt relief attorneys are available to consumers throughout Minnesota including people living in Minneapolis, St. Paul, Edina, Roseville, Bloomington, Golden Valley, St. Louis Park, Robbinsdale, Brooklyn Center, Anoka, Columbia Heights, Oakdale, Egan, Mendota Heights, Eden Prairie, Deep Haven, Minnetonka, Wayzata, Mound, Hopkins, Chaska, New Brighton, Chanhassen, Excelsior, Orono, Shakopee, Richfield, Brooklyn Park, Plymouth, St. Anthony and Maple Grove.

For an appointment to meet a Minnesota debt relief attorney in the greater Minneapolis office in Edina, Minnesota or in the greater St. Paul office in Roseville, Minnesota, please call Neff Law Firm, P.A.'s, central scheduling telephone number of (952) 831-6555.

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