Chapter 7 bankruptcy and real estate question in AZ?
My husband and I are considering filing chapter 7 bankruptcy. We rent a mobile home and are making payments on another piece of property outside of town where we are in the process of building a house. We still owe ,000 on the purchase of the land (original price was ,000). The house is partially finished and we are doing the work ourselves (foundation and walls are up). Would we lose this property or would we be able to keep it?
Posted May 5th, 2010 in Bankruptcy Q and A. Tagged: building a house, chapter 7 bankruptcy, filing chapter 7, filing chapter 7 bankruptcy, mobile home, process of building a house.
You would have to have it appraised, and then the question would be, do you have more equity in it than can be exempted under your state’s exemptions.
If you have more equity than can be exempted, you may be able to file Ch 13 rather than Ch 7 in order to be able to keep it.
See an experienced local bankruptcy attorney, give them the facts, and let them run the numbers for you. That is the only way you will be able to get an accurate answer for your particular situation.
May 5th, 2010 at 8:25 pmchapter 7 is liquidation so youd end up having to sell the house and give the money to the courts now if you file chapter 13 youll be able to keep your house because chapter 13 is a repayment plan.
May 5th, 2010 at 8:25 pm