Q: I own my home outright but lost my job last year and have so much credit debt that I think I need to file for bankruptcy
Will I be forced to sell my house as an asset if I file? It's probably worth enough to pay off my debts, but my family and I need a place to live.
A:
The Answer depends on the type of bankruptcy you file, and the amount of equity you have in your home. In a Chapter 7, you can exempt up to $23,675 in equity, or twice that if the home is owned jointly. In a Chapter 13 plan, you would propose a payment plan, to pay back your creditors over a 3 to 5 year period. So long as they are getting at least as much as they would in a Chapter 7, you would be allowed to keep the home.
To get individual advice about your situation, I would encourage you to speak with an attorney in your geographic area.
A: It really depends on if you are filing a seven or a thirteen. If you have 100 percent equity, you can probably make a payment plan with he trustee, but need to be able to show a positive income over expenses...speak with counsel in your jurisdiction
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