Q: If my home is paid for and I only owe unsecured credit card debt can I file Chapter 13 and keep my house.
A: A debtor can file Chapter 13 and keep assets, but the amount paid to the unsecured creditors over the life of the Chapter 13 case must equal the non-exempt value of the assets retained. This is known as the liquidation value test. currently in Alabama, a debtor may retain $15,000.00 per person in homestead real estate. If your home value exceeds that amount, the difference must be paid to your unsecured creditors during the case. This is a short answer. Please contact me, or another lawyer, for more information on this.
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