In the process of filing bankruptcy there's always the chance that you might lose some of your property.
Usually, when a debtor files for Chapter 7 bankruptcy the possibility of losing property is greater depending on what they have.
Every state has exemption laws that protect a portion and sometimes all of what individuals own.
Included in that is a homestead exemption protesting the equity of their home.
But as in everything else, if you can't afford to pay for it, you can't keep it.
Many people filed Chapter 13 bankruptcy explicitly for the reason of protecting their property.
The Chapter 13 bankruptcy allows the debtor to negotiate with the creditors and pay them back over a 3 to 5 year time frame.
This allows the debtor to buy some time to get caught up on back payments and keep their home as long as they can stay current on the Chapter 13 bankruptcy payment plan.
In today's economy no one can say for sure what's in the future and many times the finances of a debtor change during the payment plan causing them to lose the house since they can't afford it.
Losing their home to foreclosure is one of the fears that many people filing bankruptcy worry about.
In many cases this fear is justified because people don't know where they'll live if they surrender their upside down home.
There are stories all over the Internet about how a bankruptcy filing will damage a person's credit so bad that they won't even be able to rent a place.
Most of these stories don't tell the whole picture and it's really not as bad as the fears bankruptcy filers have.
Growing up, my mom used to always say that 90% of your fears never turn into reality.
So basically, stop worrying, everything will work out.
There are always places to rent even for someone that has bad credit from a bankruptcy filing.
Good advice would be to stay away from the large apartment complexes that are managed by a big corporate property management company.
Many of these will reject an application of someone that doesn't have stellar credit.
The best place to look is in the newspaper to find a property owner that rents their own property.
Explaining your situation can go a long way.
If the reasons for filing bankruptcy were medical and unstoppable many landlords will be very understanding.
If the reason was because of the foreclosure on your home it's pretty common these days and many landlords feel your pain of the downturn in the real estate market.
Many landlords sitting on pieces of property they have been trying to sell for a long time might be willing to offer a lease option to buy.
This way you will get a nicer home or condo compared to what's available for rent.
It also will help you rebuilding your credit after your bankruptcy filing.
Depending on how it's written many lease options they cumulate the rent towards the purchase price if you end up buying the property.
Look at your bankruptcy filing as not the end of the world, but the beginning to a fresh start.
Don't fret if you have to give up your house to foreclosure, it's only a house and with the proper work you'll own again post-bankruptcy filing.
Take the time to rebuild your credit, along with learning from your mistakes and you'll be on track to a debt-free future.