Your home is likely the place where you feel safest in the world. If you're considering bankruptcy, you're probably wondering what could happen to your home. Bankruptcy attorney and estate lawyer Robert A. Schwartz has the answers. For over three decades, he has been helping Rochester, NY, clients just like you find viable debt relief solutions.

Here, Attorney Schwartz shares three facts about home ownership and bankruptcy:

Everything Depends On The Type Of Bankruptcy

There are two types of bankruptcy consumers can file, Chapter 7 or Chapter 13. Under Chapter 13, in which your debts are restructured and repaid, you can keep your home as long as you can afford it. Under Chapter 7, which eliminates most of your debt, things are a bit trickier.

A Chapter 7 filing means your nonexempt assets will be sold to repay your debts. However, there are protections in place you may be able to utilize; for instance, if your equity in your home is exempt, bankruptcy courts cannot repossess. Bankruptcy and estate lawyer Robert A. Schwartz will help you understand your choices when it comes to your home.

Bankruptcy Won't Reduce Your Mortgage

Unfortunately, a bankruptcy filing won't reduce the amount of money you owe on your mortgage. If it is the first mortgage on your primary home, you are still obligated to pay it off as usual, or your lender can legally foreclose. However, under Chapter 13, you might have the option of reducing a mortgage that is not the primary mortgage on your property. Attorney Schwartz will work with you to see if this is practical for your situation.

Bankruptcy Can Stop, Or Slow, Foreclosure

When you file for Chapter 13, any foreclosure action against your house is stopped. With Chapter 7, the foreclosure process is temporarily delayed, allowing you to explore your options with your lender and your attorney. Remember that under Chapter 7, foreclosure cannot be permanently stopped, and you will still have to continue paying your mortgage if you decide to stay in your home.

Let bankruptcy and estate lawyer Robert A. Schwartz guide you throughout the bankruptcy process. You can call his firm at (585) 334-4270 to schedule a free consultation, or visit his website for more information. Your home is your sanctuary; find out what you can do to protect it during bankruptcy.