Q: We are considering bankruptcy but are concerned about our home.
We own an old home and started buying a double wide. Old home was used in our loan as part of down payment. Will they take one of our homes and how do we keep that from happening?
A: Although only one residence is protected by the homestead exemption in bankruptcy (in Louisiana, the one you occupy, up to $35,000 in equity), that doesn't necessarily mean losing one property. One situation in which the secondary property might be retained would be if there were little or no equity in that property. In a situation in which there is equity in both properties, a Chapter 13 bankruptcy filing might offer a solution.
Talk with a local bankruptcy attorney who can review the value, outstanding debt and other factors and explain the options available in your particular circumstances.
*Kevin Chern is Managing Partner of UpRight Law, a national law firm with licensed attorneys providing bankruptcy and consumer legal services in all 50 states. He is an Illinois licensed attorney with 21 years of federal consumer bankruptcy and consumer protection law experience. This response is for informational purposes only and is not intended to be legal advice. For legal advice, consult an attorney licensed in your state with the appropriate expertise.
Samuel John Ford agrees with this answer
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