Going through
a bankruptcy is hardly easy for anyone. However, if you own a home, you
have a few more options than most people. Here are some of the financial
strategies that you can use if you own a home to see you through a bankruptcy.
Home Equity Line of Credit
If your credit
history is good, you may ask a financial institution to give you a line of
credit based on the equity that you have in your home. This line of credit
pays back creditors and stay current on debts that would otherwise put you
into bankruptcy. If you are already in the bankruptcy proceedings, a judge may
offer a lifeline if your home assesses at a high enough value.
Debt Consolidation
Based on the equity
in your home, you have options for debt consolidation. Consolidating a debt
means finding an outside third-party creditor. This creditor will aggregate all
of your debts into a single bill. It is possible to reduce the overall
principle on the amount of money owed during a debt consolidation. The equity
in your home buffers payments against this newly consolidated debt.
Home Rental
Renting out a home
to renters gives you an additional stream of income that creditors may accept
as a line of payment. The ongoing nature of rental income staves off bankruptcy
while giving you a lifeline to find other sources of income to pay back your
creditors. Check the market rates for rentals in your area to see how much your
home is worth.
Regardless of your situation, income,
or equity, if you would like to discuss all of your options for selling your
home quickly to avoid foreclosure, contact us online.
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