Q: What will happened to my house if I claim bankruptcy? House payment are good. High credit card debt.
A: How your real estate is affected depends upon which chapter you file. Please feel free to contact me at wamann@amburlaw.com if you'd like to learn more. Thank you.
Timothy Denison agrees with this answer
A:
That depends largely on the value of the equity value remaining after the Mortgage debt(s) or liens (including taxes) that are against it. The federal exemptions allow you an exemption in that equity value of approx. $25,000. The value of the total is also usually reduced by about ten percent of gross value to represent costs of sale. After those deductions, if there is not sufficient equity for the trustee to go after (in a Ch. 7), then you should be able to retain your house.
A Ch. 13 case is designed to "save the house", particularly if you are in arrears in the mortgage payments. That aside, if you make more than the "median income" for your locale, you may not be eligible for a Ch. 7 and Ch. 13 may be your only choice. Note that your Ch. 13 plan must pay creditors at least as much as they would get in a Ch. 7 case if everything was liquidated by the trustee.
For sure, discuss these issues with a bankruptcy lawyer familiar with both bankruptcy law and your state and federal exemptions that you may claim.
Timothy Denison and William Michael Bryk agree with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
