Can you file bankruptcy and own a home?

Answer 1

All states have Homestead exemptions that can be used to protect the equity in a house. The amount varies by state, for example Florida has an unlimited exemption others are quite strict allowing as little as $5,000. Check the state statutes concerning homestead exemptions in the state of residency. It also depends on whether the debt(s) are joint and how the property is titled.

Answer 2

Yes, one can normally keep a home in bankruptcy. When discussing losing a home in bankruptcy, there are two potential entities that can take it: the mortgage lender and the Bankruptcy Court. WITH RESPECT TO THE MORTGAGE LENDER: In Chapter 7, one may normally keep a home so long as mortgage payments are current (or an agreement with the mortgage lender can be worked out to let the debtor cure the arrearage). To do this in Chapter 7, the debtor may simply be able to keep making payments, or the mortgage lender may require the debtor to sign a reaffirmation agreement, reaffirming the mortgage debt. In Chapter 13, one can keep a home so long as they cure any arrearage in their Chapter 13 Plan and then keep future mortgage payments current thereafter (either by direct payments to the mortgage lender or through the Plan, depending on the jurisidiction). WITH RESPECT TO THE BANKRUPTCY COURT: One may normally keep a home in bankruptcy so long as the amount of equity that person has does not exceed the amount the state in which the person filed bankruptcy lets one keep in bankruptcy. For example, Indiana allows each person to keep $7,500.00 in residential real estate equity. So, if a person owns a home worth $100,000.00, and they owe $95,000.00 on it, then they have $5,000.00 in equity. Since Indiana lets a person keep $7,500.00, then the person with $5,000.00 in equity would be able to keep their home in bankruptcy. And, as a practical matter, even if a person is over their exemption limit a little doesn't mean the Court will take it, the Court will only sell a home if one is over their exemption limit by a substantial amount. And, even if a person is over their exemption limit by a substantial amount, that person can still keep the home by filing a Chapter 13 and setting up their Plan properly. And in some cases, you can also keep a home in Chapter 7 even if you're substantially over your exemption limit by paying the amount you are over the limit to the trustee. Ask your lawyer. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.

Answer 3

It depends.

Obviously, your going to have to be current on your mortgage or have an agreement with the lender about the debt.

[And equally obviously, your not going to be able to keep the equity, that is the value of the house above your loan, (especially if substantial), while others you owe go unpaid. That would be saying you had others pay for your house and would keep it using the money that the others should have been paid and you want to be excused from paying. (For example, make your mortgage payments using your credit card advances, keep the house and don't be excused from paying the credit card lender...ain't going to happen).]

The above is simply not so and seriously confused.

If you are not in foreclosure and file a chapter 7, yes, you can keep the house.

If you are in foreclosure, you file a chapter 13, with a plan to pay the mortgage arrears and maybe something on the unsecured debts. That amount depends on the value of your assets less what you owe, and on the "excess income" every month, which has to be enough to get caught up in 5 years or less.

Answer 4

Yes.

There are multiple forms of bankruptcy, such as Chapter 11, 9, etc. Some forms of bankruptcy simply set up a payment plan with the creditors, others forgive the debt entirely. The judge will determine what debts take precedence over others, and what amount, if any will be will be forgiven.

The judge will take into account the amount of your debts, assets, and income in order to determine your ability to pay. It is possible that the judge will exclude the value of your home- or the amount of savings in your retirement plan when calculating your assets. This is dependent on the type of bankruptcy filed, and the discretion of the judge.

Answer 5

It depends. If you declare bankruptcy on another house while you are living in your formal house, no you don't lose your formal house. If you declare bankruptcy on your formal house, you get your house foreclosed, or taken away by the bank. ----

Answer 6

You can but three things can happen depending on which type of bankruptcy you file. 1. You can either include the home in the bankruptcy and move out. 2. You can declare the house and exclude it from the bankruptcy and continue paying the mortgage. 3. You can include it in your bankruptcy and work out a payment plan with the court to continue paying the mortgage. The short answer is 'yes' you can file a bankruptcy and own a home.

Answer 7

You don't file bankruptcy "on" anything. You file bankruptcy to get the protections bankruptcy offers. If there is no equity in the rental house and you surrender it to the creditor, you will be able to keep your (presumably different) home if it is up to date on mortgage payments, or if you file a Chapter 13 with a Plan that includes becoming current.

Answer 8

Yes. Whether or not the property can be retained depends upon the circumstances. The first being if the mortgage agreement is still valid and the property has not been subjected to foreclosure action. The second is if the property is protected by the propery exemption amount allowed under state law.

If the property is in foreclosure or payments to the morgage/lien holder(s) are in arrears it is necessary for the borrower to negotiate with those entities concerning restructuring/refinancing of the loan. If that is not possible the home will be forfeited.

Likewise, if the exemption amount does not protect the property from being included in the BK then the home might not be excluded from bankruptcy action.

Answer 9

This really depends on a number of facts that include the state that you live in, the amount of exemptions your state has for bankruptcy, whether your home has equity and whether you are current on the mortgage. It will also depend on what type of bankruptcy you are trying to file. In cases where there is no equity in your home and you are continuing to pay the home, you should be able to keep your home. If there is equity in your home then you need to look at what bankruptcy exemptions are available in your state to protect the equity in your home.