Can I still keep my property if I file bancruptcy? I just divorced and have property valued at $640,000 last year.
I owe $400,000 on it, but it is financed with payments of $2,000 per month (interest only). I currently do not have a job, but I am in school.
I missed last month's payment.
I am a single mom with two under-age children.
Whether you will lose your home depends on many different factors including the type of bankruptcy case you may be eligible for. A Chapter 13 case could be an option for you if you qualify, and you can generally keep your home in a Chapter 13 if your payment plan provides for the mortgage payments. Your payment plan will have to account for the fact that the interest-only payments are likely to end during your Chapter 13 Plan. Especially because you have 2 children to think about and to provide for, I recommend that you speak with an experienced bankruptcy attorney (I keep saying this) who can help give you the information that you need to evaluate your options.