[jakenn]

We are facing Chapter 7 bankruptcy and our lawyer has informed us that because we are behind on our mortgage payments, we must include our home in our bankruptcy filing.

Can we just go through the foreclosure procedure instead and what are the pro's and cons of foreclosure vs bankruptcy?

[Fr_Chuck]

Ok, if you have to go bankrupt because of all your other debts, credit cards, other bills, then you include the home if you don't want to keep it or save it.

If you only have the home as your only real debt, you can let it go into foreclosure and always go bankrupt latter if you need to.

But it is really a matter of what is all of your debts, if you did not include the home do you still have enough debts to file bankrutpcy anyway ?

[George_1950]

Welcome to AMHD. Do you want to try to keep your home? "All property of the debtor at the time of the filing (and certain other property to be received in the future) becomes the property of the bankruptcy estate once bankruptcy is filed...HOWEVER, there is certain property which is either excluded or exempt which the debtor will be able to keep. Property or asset exemption are determined based upon your situation, income and the laws of your state. The best way to determine which property to keep requires a detailed analysis of your situation. You need a good lawyer. Don't pick one that advertises in your local paper." see:
Bankruptcy Chapter 7 Personal Consumer Creditors File

[George_1950]

See also: Information about Chapter 13; has your attorney discussed this option with you? Bankruptcy Chapter 13 Debt Payment Retain Assets