Posted on: 11th Nov, 2009 09:22 am
I have 100K in equity of my home. If I file Chapter 7, does it mean the house will be sold and if sold, will I get any of the equity after paying off my mortgage?
If you include the house in your bankruptcy the lender will then petition to have it removed so they can begin foreclosure proceedings.
If they foreclose and take back the house you will lose your $100,000 in equity.
If at all possible, continue to make the payments.
If bankruptcy becomes your only option, consult with your BK attorney to get more details and how this applies to the laws in your state.
Good Luck!
If they foreclose and take back the house you will lose your $100,000 in equity.
If at all possible, continue to make the payments.
If bankruptcy becomes your only option, consult with your BK attorney to get more details and how this applies to the laws in your state.
Good Luck!
It depends on two things. 1 - the (bankruptcy) exemption for your home n your particular State and 2. how the "homestead exemption" works in your State.
I live in California, and when I did my Chapter 7, right off the top I was exempted from $50,000.00 from the equity I had in my house, then the homestead exemption came in afterwards.
You should check with a local Attorney, because the answer is going to be specific to where you live.
I live in California, and when I did my Chapter 7, right off the top I was exempted from $50,000.00 from the equity I had in my house, then the homestead exemption came in afterwards.
You should check with a local Attorney, because the answer is going to be specific to where you live.
