Manchester, NH asked in Bankruptcy for New Hampshire

Q: What will happened to my house if I claim bankruptcy? House payment are good. High credit card debt.

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2 Lawyer Answers
William J. Amann
PREMIUM
William J. Amann
Answered
  • Bankruptcy Lawyer
  • North Andover, MA
  • Licensed in New Hampshire

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

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

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

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