If I own my house and filed for bankruptcy, can the company take my home from me? - Bankruptcy Law Questions and Answers- LawQA.com

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If I own my house and filed for bankruptcy, can the company take my home from me?

I own a house. I owe around $28,000 in credit cards and I am on permanent disability. If I claim chapter 7, can they take my home.


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There are exemptions on keeping a home, it will depend on the amount of equity in the home.

Answer Applies to: California
Replied: 3/18/2013

Answer By Terrell Monks
Law Offices of Terrell Monks
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Your homestead will generally be exempt from creditor claims (other than mortgages) in Oklahoma. There are limits on the amount of equity accumulated in recent years and limits to the amount of land than you may protect.

Answer Applies to: Oklahoma
Replied: 3/15/2013

Answer By David VanDyke
Bird & VanDyke, Inc.
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Federal Bankruptcy law allows people who file bankruptcy to keep a certain amount of property through the various exemptions available. Whether or not you can keep your home will depend on how much equity your home has. If you are over a certain age and/or disabled then the amount of equity you are allowed to have is increased. If you know what your home is worth and what you owe on it then the amount of equity you have can be easily determined. Do not file for bankruptcy until you absolutely know this. Do yourself a huge favor and see a competent bankruptcy attorney before you do anything. If you file for bankruptcy and the court determines that the equity in your home exceeds the amount of your available exemptions your home will be liquidated (sold) and you will not be allowed to simply dismiss your case. They will take your home. This is why it is so important that you know all of this BEFORE you file so you can plan it out BEFORE you file.

Answer Applies to: California
Replied: 3/15/2013

Answer By Kevin Bruning
Bruning & Associates, PC
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Whether you will lose your house in bankruptcy depends on numerous factors including whether there is a mortgage on the house, how much the house is worth, and how you hold title to the house. An experienced bankruptcy practitioner will assist you in determining how best to preserve the equity in your house in a bankruptcy.

Answer Applies to: Illinois
Replied: 3/14/2013

Answer By Todd Mannis
Law Offices of Joseph A. Mannis
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Depends on the amount of equity you have in the home.

Answer Applies to: California
Replied: 3/14/2013

Answer By Dorothy G Bunce
A Fresh Start
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I would have to know how much your house is worth and how much you owe against it. Every state has different exemptions that allows you to protect your equity interest in your home. In Nevada, that amount can vary from $125,000 to $550,000, depending on how long you have owned the property. The amount of equity allowed in Nevada is much higher than that available under the laws in most other states.

Answer Applies to: Nevada
Replied: 3/14/2013


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If you live in Florida your home is "out of the reach" of your creditors. In Florida your home could be worth 1 million dollars (if in a munincipality not on more than 20,000 sq. ft of land) and paid off (free and clear) and it would be yours to keep?if you file bankruptcy. The home is only subject to consentual liens like a mortgage or line of credit, and can be attached by IRS. There are other requirements to bankruptcy, that you disclose all assets and liabilities and report transfers, income, etc.

Answer Applies to: Florida
Replied: 3/14/2013

Law Office of Stuart M. Nachbar, P.C.
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In New Jersey, It will depend on the following: are you in arrears on the mortgage, do you have any equity in the property after your allowable Federal Exemption. If the answer is No to both, you will probably be safe, but I strongly urge you to get a consult with a bankruptcy specialist.

Answer Applies to: New Jersey
Replied: 3/14/2013

The Schreiber Law Firm
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The question is not whether the creditors can take the house, it is a question of whether a bankruptcy trustee can take the house. If you have no equity, then it is not a concern. If there is equity, unless you can fully exempt the equity in the house, the bankruptcy trustee can sell the house, give you whatever amount of exemption you can claim and pay your creditors with whatever is left over. The exemption you have available depends on the state where you live, so you would be best served to consult with a bankruptcy attorney as to your options rather than risk your home.

Answer Applies to: California
Replied: 3/14/2013

Answer By Debby Bowinski

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The answer to your question will vary significantly from one jurisdiction to another. Some states allow a person to protect quite a bit of equity in a home, while in other states you cannot protect very much at all. It would be a very good idea for you to consult with an experienced bankruptcy attorney in your area to determine whether bankruptcy is a wise choice for you.

Answer Applies to: Colorado
Replied: 3/14/2013

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