Owning a home is a dream shared by many, but it is certainly something that is challenging to achieve. Homes come in many different shapes and forms, and depending on where you live, you may be able to get more or less for your money. When purchasing a home, it is always important to consider how a mortgage payment will impact your monthly expenses, especially when you have other outstanding debt in the way.
You may have heard of the phrase “house poor,” which is simple a term to describe some people who have beautiful homes that they cannot afford. Being able to make your mortgage payments is always of utmost important; however, if you find that you are living from paycheck to paycheck, or racking up other debt, it may be time to consider eliminating as much debt as possible so that you can manage your mortgage payments with a little less financial stress.
How Can Bankruptcy Help
Contrary to popular belief, filing for bankruptcy is not a death sentence to your credit score and creditworthiness. Of course, your credit may take a hit at first, but paying off debt will actually help your credit in the long run, as you begin to rebuild your credit. Further, if you do decide to file for bankruptcy, you more likely than not will be able to keep your home. You do always have the option of selling your home for something more affordable, but if there is a way for you to eliminate other debt that is contributing to your financial difficulties, this will certainly help you manage your home, especially if you choose Chapter 13 bankruptcy where you will have a repayment plan to satisfy outstanding debt over a fixed period of time. Click here for more info.
Do I Have Options Other Than Bankruptcy?
Bankruptcy is not the only way to tackle debt. Depending on how much debt you have, and how many different types of debt (or number of creditors) you have, there may be alternatives available to you that will better fit your situation. For example, if you only have a few credit cards that have high balances, you may be able to negotiate with your creditors to settle your outstanding debt, or participate in a debt-management program that will help reduce your monthly payments and interest rates. Find out more from the attorneys at Ariano & Reppucci.
Paying off your debt and keeping
your home can occur simultaneously. You
may even be able to negotiate a modified mortgage on your home to help lower
your payments. You do not need to
consider yourself “house poor” simply because you are struggling to manage all
of your debt. Exploring your options now
will help you formulate the right plan to move forward while eliminating your
debt and staying in the home that you love. It's important to explore your options with an experienced Tempe bankruptcy lawyer.
