Protect a Primary Residence from Chapter 11 Bankruptcy

When times get tough sometimes the bills keep coming but the money does not.  So what do you do when something as important as your primary residence is at stake?  Do you just allow the bills to keep piling up and hope that some miraculous windfall will come your way?  Can you protect your primary residence if you file for bankruptcy or will you almost certainly lose your home?  With this long list of questions and your primary residence on the line, you need answers.

Bankruptcy is what individuals do when they have no other way to deal with their debt and they wish to erase or repay that debt.  This process often includes the liquidation of all assets to help pay off debts.  You don't want to lose your primary residence in this liquidation process, however, so you need to find a way to file bankruptcy while still keeping your home.

The main types of bankruptcy that you can file are Chapter 7, Chapter 11, Chapter 12, and Chapter 13.  Each one covers a different type of person or organization in debt.  Some are for those who will not be able to repay their debts while another is for those who will be able to repay their debts in time.  Chapter 11 is usually used by businesses but individuals can use it as well.  It is a complicated procedure but affords certain protections that other forms of bankruptcy do not.  Anyone who wants to keep their primary residence after they file for bankruptcy will want to consider filing a Chapter 11.

The beauty of Chapter 11 Bankruptcy is that the primary residence in naturally protected in this form of bankruptcy.  While some assets will still fall into categories of assets that may be liquidated to help pay off the debts, at least in this form of bankruptcy you don't have to worry about protecting your primary residence.  Of course, as with any legal proceedings you will need the help of a qualified attorney.

Filing for Chapter 11 bankruptcy is an inherently complicated process.  You need an attorney so that you know how to file properly and what exactly will happen when you do.