Can I File Bankruptcy And Keep My House?

It sounds like consolidation isn't an option for me? If I file bankruptcy do I get to keep my house? Please somebody let me know as soon as possible!!!!!!!!!!!!!!!

The best way to keep your home when you are filing bankruptcy is to file Chapter 13. Basically, you are set up on a payment plan by a court appointed trustee who determines an affordable monthly payment for you based off of your income and expenses.

You make monthly installment payments to the trustee, who disperses them to all of your creditors, including your mortgage lender, until the debts are paid off (at times in full) over a 3-5 year period. Unfortunately part of the monthly installment goes towards the fee that is paid out to the trustee for managing your case.

I would think twice before filing Chapter 13 however, as it is very difficult to complete the repayment plan do to the length of such a plan. If you miss any payments they can kick you out of the repayment plan and you will be left off right where you started.

Are you behind on your mortgage right now? If not I would say there really is no reason to file yet. What does everyone think? Is Chapter 13 a sensible option?

 

I also think you can file Chapter 7 and keep your house, if your primary residence is considered to be "exempt" from liquidation in the state where you reside.

Can somebody please confirm this? If so, what are the states? Thanks, I don't want to mislead anyone...

Only DC offers unlimited homestead exemptions. DE, PA, MD, and NJ, on the other hand, do not offer any property exemptions whatsoever.

States that offer exemptions based on the size of the lot include AR, FL, IO, KS, OK, SD, and TX. Equity-only states are AK, AZ, CA, CO, CT, GA, ID, IL, IN, KY, ME, MA, MI, MN, NV, NH, NM, NY, NC, ND, OH, RI, SC, TN, UT, VT, WA, WA, WV, WI, and WY.

States that exempt on both lot size and equity are AL, HI, LA, MI, MN, MS, NE, and OR

Under Chapter 7 you may have to turn over most of your nonexempt assets to the court appointed trustee to sell but you may keep some of those assets up to a certain value because you are entitled to exemptions. You many want to check with your state's rule regarding exemptions, because they vary across the country.

To find out whether you can keep your house, answer the following:

1. How much equity is still left in your home? Home equity is the fair market value of your house without any liens to it.

2. As mentioned earlier, find out your own state's exemptions, so you'd know how much could be applied to your house.

3. Once you have the figures, from your home equity, subtract your total exemption amount.

If the exemption is higher than the home equity, you may be able to keep your home, but if the equity is higher, the trustee will sell your home, give you the amount of your exemption, then pay your unsecured creditors--after he/she subtracts his/her service fee.

This is if you are not behind in your mortgage, otherwise, you would be facing foreclosure.

I really do not know what to do ?

CHNfly, what is your situation? Are you having issues with credit card debt? Let us know and we can help point you in the right direction.

If you are not comfortable sharing your situation through the forum feel free to fill out a form on DestroyDebt.Com for a free consultation.

Thank you Marc but the question was already answered correctly. Please do not advertise on the website as that is not the purpose of the forum. If you do so your posts will simply be removed.

I have a bunch of collectors after me for my debts!!! The calls are non-stop and I really do not have any money to pay them right now (I am on SSI).

Do you think bankruptcy is the best way to get rid of credit card debt?