If I file Bankruptcy, Will I lose this home?
My mother and I both own a home (both of our names on the deed). I’m considering filing chapter 7 BK, and was wondering what will happen to this home we both own?
I (not my mother), have an equity loan on the home with a balance of k. The home is worth about k – k.
My question is, if I’m current on the payments when I file BK, can the home still be taken?
And if during and after the BK is discharged, and I’m still current on the payments, can the home be taken?
Thank you!
If you can exempt the equity you have in the home and you are current on your payments at the time you file Ch 7, you can reaffirm the debt at the time you file the bankruptcy. Then you would continue making payments and keep the home.
May 9th, 2010 at 1:04 pmI filed 5 yrs ago and did not lose my home or car. a lawyer would know this answer best.
avoid bankruptcy if you can….. work extra jobs, cut expenses, sell things, pay off debt, get on a tight budget. work overtime… And get control of your finances…
May 9th, 2010 at 1:04 pma chapter 7 will liquidate your assets. You very well may lose the home. I would recommend talking to an attorney about chapter 7 and 13 (which is debt re-organization) to see which one will work out best for you. I do know that in some cases they let you keep your home. My mother just filed chapter 7 and she owns a small home outright with no mortgage, and the trustee did not take her home away. They usually let you have a basic home and basic car. Nothing fancy, just enough to get by. So with that being said you might be lucky and get to keep the house. But, don’t take anyone’s word for it unless there is an LPA after their name.
May 9th, 2010 at 1:04 pmGood Luck to you