How to File for Bankruptcy in Utah & Keep Your Home That's in Foreclosure
- 1). Review your finances closely to determine whether you can truly pay for your home. The bankruptcy court will not allow you to a keep a home if you cannot pay the mortgage. To be able to keep your house through Chapter 13, you will have to be able to make your monthly mortgage payment, make any other necessary payments such as homeowners insurance or court-ordered child support, and also still be able to pay the repayment plan while supporting yourself. If you cannot financially juggle all of these obligations, you won't be able to keep your home.
- 2). Contact a bankruptcy attorney to assist you through the process of filing for Chapter 13 bankruptcy. Although you do not need an attorney to file for bankruptcy, bankruptcy is a very complicated matter and, according to UScourts.gov, most individuals who file without an attorney are denied or otherwise unsuccessful.
- 3). Take time to understand the homestead exemption in Chapter 13 bankruptcy. In Utah, the exemption for a homestead is limited to $125,000. That means an equity in the house beyond this sum can be lost or liquidated during bankruptcy.
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