Posted on: 07th Feb, 2012 12:02 am
Hi there… I bought a condo, 7 months ago with cash which was a loan from one of my friends. Due to my credit card and medical debts, I need to file bankruptcy now. Will I lose the house if I file bankruptcy? Or will I be able to save it with the federal Homestead exemption and keep paying my friend the payments? Thanks
Hi Gwaneth,
If you file bankruptcy, you will have to list the house as your asset. If there is equity in your property, then the trustee may sell it off in order to pay off your other debts. Homestead exemptions are definitely applicable. The exemption for a homestead is limited to $125,000 in case you acquired the property within the previous 3.3 years.
If you file bankruptcy, you will have to list the house as your asset. If there is equity in your property, then the trustee may sell it off in order to pay off your other debts. Homestead exemptions are definitely applicable. The exemption for a homestead is limited to $125,000 in case you acquired the property within the previous 3.3 years.
the bankruptcy discharge eliminates your personal liability for the mortgage, but it does not disturb the lien. thus, after bankruptcy, the mortgage lender still has its rights in the property, including the right to foreclose if you breach the loan agreement.
but, just filing bankruptcy is not a breach of the agreement in many jurisdictions; failing to make the payments according to the loan agreement is a breach. so, make the payments, keep the house. :idea:
but, just filing bankruptcy is not a breach of the agreement in many jurisdictions; failing to make the payments according to the loan agreement is a breach. so, make the payments, keep the house. :idea: