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KNOXVILLE, TN, May 29, 2014 /24-7PressRelease/ -- While filing for bankruptcy can be a way out from under excessive debt, there are ways that it can affect your financial future. Clark & Washington notes that one area where you may find yourself affected after bankruptcy is your homeowners insurance.
It is possible to keep your house through certain personal bankruptcy proceedings. However, it may be difficult for you to renew your homeowners insurance. Insurance companies must balance risk versus reward when agreeing to insure a client, and many simply believe that bankruptcy is too significant a risk.
Unfortunately, homeowners with a deed of trust are legally required to maintain basic homeowners insurance coverage to be in compliance with their home contract. Luckily, filing for bankruptcy is typically not a qualifying reason for early cancellation of your policy--but missing payments can be. The Knoxville bankruptcy attorneys encourage you to remember that it is possible for homeowners to use an escrow account to pay for their insurance.
When your insurance comes up for renewal, your insurance company is within its rights to choose not to renew the policy. Part of the approval process for insurance policies is a credit approval, and filing for bankruptcy will significantly lower your credit score. For that reason alone, the company may reject you or charge you higher insurance premiums. If you are paying higher premiums due to a low credit score, though, the company must inform you of that fact.
If your existing insurer will not renew your policy, Clark & Washington recommends that you look into FAIR plans and lender-placed insurance in addition to shopping other insurance companies. These options may be less than ideal, but they will keep you in compliance with your deed of trust contract.
Learn more at http://www.knoxvillebankruptcyattorney.com.
About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.Knoxvillebankruptcyattorney.com.
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