losing home in bankruptcy

Bankruptcy and the lose of a home

Filing bankruptcy without losing house happens all the time.  This is usually one of biggest concern with my clients that own property.  It’s understandable that there is so much concern about filing bankruptcy without losing house since our homes are usually are largest asset (and usually our largest debt).  Most people are able to keep their house when they file bankruptcy.  But its important to know that if there is excessive equity in the home or you are unable to make the required payments there is a good chance you will lose the home in the bankruptcy.

Many time you see that I write on Chapter 7 bankruptcy and Chapter 13 bankruptcy in the same blog article.  I try and do this so you can get an idea of what you need to ask your attorney when you go to interview him about your case in your first consultation.  You need to be somewhat versed in the types of bankruptcy and know what your  asking about.  Since losing a home is a big deal here are a few questions you need to get answers to:

  1. How much of my homes equity can I protect under the homestead exemption in this state?
  2. How do we calculate the equity in my home?
  3. Is Chapter 13 a better option for me to save my home?
  4. How do we calculate the current value of my property?
  5. Will the attorney figure out the value for you from tax records or do you need to hire a real estate appraiser to get the real value?

These are just a few questions you need to ask when you are looking into filing for bankruptcy.  If the law firm you are dealing with cant easily explain the answers to these questions then you might want to move onto another law firm that can.  As I have said before make sure you get to speak with the attorney about these issues when you are deciding to hire a firm – do not let a para legal or worse a sales person sell you on the bankruptcy idea since you need answers and that is what you are paid an experienced attorney to provide for you.

 

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