QUESTION
Can I keep my house if I file bankruptcy?
Asked on Mar 15th, 2012 on Bankruptcy - California
More details to this question:
If I file for bankruptcy (not sure which chapter) can I keep my house as long as I can keep making the mortgage payments? I've got a lot of equity.
13 ANSWERS
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes.
Answered on May 30th, 2013 at 2:49 AM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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I am assuming you are a resident of Florida. Generally, there is no problem keeping your homestead in bankruptcy. But you should still consult an attorney prior to filing to be sure that you will have no problems with a possible exception to the usual rule.
Answered on Mar 20th, 2012 at 10:59 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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You can keep your house in chapter 13. Whether you can keep it in chapter 7 depends on the limit of your homestead. Consult an experienced bankruptcy attorney regarding the specific facts in your case.
Answered on Mar 20th, 2012 at 9:59 AM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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In Minnesota, you can exempt and keep up to $360,000.00 equity in your home.
Answered on Mar 20th, 2012 at 7:55 AM
Domestic Relations Attorney serving Huntsville, AL
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Ferguson & Ferguson
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If you have alot of equity you would have to file a chapter 13. In a chapter 13 you would have to continue to pay your regular mortgage payments in addition to a payment to the Banktuptcy Court on the rest of your debts.
Answered on Mar 19th, 2012 at 1:36 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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If you have a lot of equity, then that equity is needed to pay your creditors. So in a Chapter 7, the trustee would sell the house to get the equity to pay creditors or in a Chapter 13, you would be required to repay the equity to the trustee so he could pay creditors. Of course, equity in bankruptcy is different than outside of bankruptcy. Equity is true market value minus liens against the property minus personal exemptions.
Answered on Mar 19th, 2012 at 1:34 PM
Your house equity is limited- see 11U.S.C.522(d)(1). So it depends if you are married, if your spouse's name or someone else's name is also on the deed to the house, etc.. Under the Federal exemptions, you can have approximately $21,450 in equity per person whose name is on the Deed. State of Michigan bankruptcy exemptions are higher, but are currently under review as to whether they are constitutional or not.
Answered on Mar 19th, 2012 at 1:31 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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Generally, you are able to keep your house in bankruptcy as long as you are able to continue making your payments. I recommend consulting with a bankruptcy attorney to discuss the specific details of your situation.
Answered on Mar 19th, 2012 at 1:07 PM
Bankruptcy Chapter 7 Attorney serving San Diego, CA
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Law Office of Asaph Abrams
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Exemption amounts determine 1) how much you can keep in a chapter 7 or 2) they can affect the threshold payment in chapter 13. Google my name + exemptions for some decent info. This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon. It creates no attorney-client relationship; it may be pertinent to CA and/or its Southern District Bankruptcy Court only, and it's independent of other answers. It may be time sensitive, as in past the "Use by" date: laws and case law change. Hire legal counsel before acting or refraining from bankruptcy/legal action.
Answered on Mar 19th, 2012 at 12:55 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Unfortunately a lot of equity is not a number. The equity in a home that you wish to exempt is limited to a dollar value and other circumstances.
Answered on Mar 19th, 2012 at 12:46 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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People often ask if they can keep homes, second homes, cars, boats, tax refunds, etc., when they are contemplating Bankruptcy. I always tell them they can keep what they want of they can pay for it, or if the equity or value is protected by an exemption in their State! There are two types of Bankruptcy for most individuals. Chapter 7 (liquidation) and Chapter 13 (payments are made to a Chapter 13 Trustee to be distributed pursuant to a Plan you and your attorney draft). To determine of you get to keep the property you have to know two things... 1) What is the equity in the property? (I.e., what is it worth minus what you owe on it). 2) Will the exemption laws that are applied to the property protect the equity? Bankruptcy is much more concerned with equity than it is with debt. If you have no equity in a rental home the Trustee in a 7 or 13 does not have an interest in the property and you may keep it. If you owe more on the vacation home than it is worth you may be able to use Bankruptcy to reduce the amount of the debt, and again, keep it. When you have equity in something that is not protected by an exemption then that is an issue that a lawyer must evaluate. See an attorney right away before you act.
Answered on Mar 19th, 2012 at 12:44 PM
Daniel James Wilson
Yes but be careful. If you have more than $60k in equity you should probably file a 13.
Answered on Mar 19th, 2012 at 12:43 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Yes if you can exempt or protect the equity. There is an amount of equity you can have with no fear of losing the house but it is limited. For example, it is $75,000 for a single person, $100,000 for a married couple or with dependents in some cases and $175,000 for people 65 or older, disabled permanently or with very little income. You need to consult with an attorney and not try to handle a bankruptcy by yourself, particularly given the issue about substantial equity in your home. You cannot dismiss a Chapter 7 unless the court allows you to do it and the trustee will object if there is unprotected equity in your home which would allow the trustee to sell your home to pay your debts.
Answered on Mar 19th, 2012 at 12:43 PM