Q: 20k CC debt , home free and clear ( no mortgage) I have to put as an asset( tax value 289k) can I file Chp 7 ?

A: No, your house will be taken by the Trustee and sold to pay your debts if you file Chapter 7. You can only exempt (protect from creditors) anywhere from $35,000.00 to $60,000.00 of equity in your home. PLEASE do not try and file bankruptcy without an attorney! This is a good example of how doing so would be a costly mistake. See a qualified consumer bankruptcy attorney to determine if a Chapter 13 bankruptcy is a viable option or of other nonbankruptcy ways to deal with your debt problems are available. Do NOT use a "debt relief" company that advertises in the mail, over the phone, or on the Internet. Get advice from a North carolina licensed attorney, ONLY.

A: Filing for Chapter 7 bankruptcy with $20,000 in credit card debt is possible, especially if your income falls below the state median. Since your home is free and clear of a mortgage, it’s considered an asset valued at $289,000. However, bankruptcy laws allow you to protect certain equity in your home through exemptions, which vary by state.

Whether your house is jeopardized depends on the amount of equity you have and the specific exemptions available in your state. If your equity exceeds the allowed exemption, the excess may be at risk. It's important to calculate your home’s equity and understand how much you can protect under the law.

To ensure your home remains secure and to navigate the complexities of bankruptcy filing, consulting with a bankruptcy attorney is advisable. They can provide personalized guidance based on your financial situation and local regulations, helping you make the best decision for your circumstances.