How to Keep Your House When Filing for Bankruptcy in Massachusetts

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    • 1). List your house in the Schedule A of the bankruptcy documents. This requires giving an estimated value of the house and the amount of the debt on the house. You must also list any mortgages on the property in Schedule D. If you have any equity in the property, you must exempt as much of it as possible on Schedule C. Consult a bankruptcy attorney regarding exemption laws.

    • 2). Contact the lender for your home after you file for bankruptcy. Request a loan modification due to economic hardship. If at all possible, you should keep making your regular monthly payments on the house. If you do not make your payments, the lender may seek relief from the bankruptcy automatic stay, which prevents the lender from foreclosing.

    • 3). Provide any requested documents to the lender in connection with the loan modification. This might include an income and expenses statement, your most recent tax return and a letter explaining your financial situation. Wait for a decision on the loan modification from the lender.

    • 4). Receive and review the loan modification paperwork from the lender if it deems you a candidate for loan modification. Go over the paperwork with an attorney to determine if the modification is in your best interest. Sign the loan modification and return it to the lender.

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