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Foreclosures should, unfortunately, remain high in 2012. While the employment picture is marginally improving, no wonderful economic recovery appears on the immediate horizon. Bankruptcy in Miami and elsewhere around the U.S. should also remain a popular option to reorganize a family’s finances.

If your mortgage and home is at considerable risk, filing for bankruptcy, while not a cure all, will give you some time to reorganize without creditor harassment and legal action. Mortgage lenders across the country already own more single to four family homes than ever. They must balance their need to protect their loans and assets with over loading their balance sheet with real estate owned (REO) properties.

Although state law differs, most jurisdictions allow petitioners to protect some of their home equity as an exemption. If the difference between your home’s FMV (fair market value) and your mortgage balance (along with other liens) is less than the exemption, you should continue to own your home after the bankruptcy is discharged.

Those with regular income can also opt for a Chapter 13 bankruptcy, which involves filing a reduced repayment plan. In most cases, homeowners can negotiate an acceptable plan with their mortgage lender, to keep their home and make reduced monthly payments.

While filing a personal bankruptcy petition is rarely a frivolous or easy decision, depending on the circumstances, it may be the best option. An experienced attorney can determine if it is the best way to accomplish your financial goals which may include protecting your home from foreclosure actions for a period of time.

Source: Forbes, “Going Bankrupt in 2012, but Keeping Your Home,” Philip van Doorn, Dec. 8, 2011