Can you lose your land if you file chapter 7?

Answer 1

That answer to that question depends on a couple of factors, and to WHOM you're talking about losing the home. LOSING THE HOME TO THE MORTGAGE COMPANY: If the house payments are behind, the mortgage company will still be able to forecose on the home even if you file Chapter 7, so the Chapter 7 may delay the foreclosure but generally won't stop it from happening. If, however, one is current on his or her mortgage payments, then that person can usually keep the home without objection from the mortgage company. LOSING THE HOME TO THE BANKRUPTCY COURT: Usually one only loses a home in Chapter 7 to the Court if they have more equity in the home than the State in which they file let's them keep in a home in bankruptcy. In Indiana, a person may keep a home when they file bankruptcy so long as they do not have more than $7,500.00 in equity in the real estate (and couples may protect $7,500.00 each, so $15,000.00 all together). These amounts will probably double in July 2005. So, in Indiana, if one owns a home worth $100,000.00 and they owe $95,000.00 on it, they won't lose the home since they can protect the $5,000.00 in equity by using $5,000.00 of their $7,500.00 exemption. This is a simplistic explanation since there are other exemptions which may apply, practical applications to consider, as well as exceptions and exceptions to those exceptions, but you get the general idea. Each State is very different on how much stuff you get to keep when you file bankruptcy, however, so check with an attorney in your area to see what exemptions you are entitled to. 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 2

The majority of Chapter 7 filings are no asset cases, meaning the debtor has no assets that cannot be exempted. The parties involved very rarely forfeit their home (except voluntarily) and are usually allowed to keep at least one vehicle. The deciding factor is if the homestead and vehicle exemptions are high enough to protect the property, and the lender's willingness to reaffirm the loans against the secured property.

Answer 3

Bankruptcy filings are different for each individual, so a specific answer is not possible. In an average bankruptcy filing the person keeps the home and at least one vehicle, and generally all personal and household items. The reason is the average consumer can protect the majority if not all of their property by using the allowable exemptions wisely. The main factor is whether the filer is able to use the federal, state or a combination of bankruptcy exemptions. When new BK reform becomes law in October, 2005, it will be extremely difficult to file any type of personal bankruptcy other than a Chapter 13. It is advisable to discuss your personal situation with a qualified bankruptcy attorney, most will offer free or minimal fee consultations. In the event of your bankruptcy, any interest you have in your house will automatically fall into the bankruptcy. However, if there is very little or no equity in the property it is unlikely that you will lose your home. The Official Receiver will usually try and reach an agreement whereby the interest in the property is transferred to your spouse or a third party for the cost of the legal fees. More information is available on the Insolvency Service website.

Answer 4

It depends if it is a Chapter 7 or a Chapter 13. If a Chapter 7 and you liquidate all your assets, then yes you will lose your home. If a Chapter 13, you can catch up the payments if you can afford it and include the past due payments in the Chapter 13. Good luck.

Answer 5

Maybe. A number of factors are involved in whether or not you will lose your house in a bankruptcy filing. Frequently, but not always, the house is different. If the mortgage payment is up to date, it is usually not a part of bankruptcy. However, state laws differ. Federal rules differ. If it looks like fraud was involved, you can lose your house. The Federal Laws are the same everywhere. Some States have specific exemptions that the FEDERAL Bankruptcy court (all BK are there) will allow you to use. Simply, if you are not up to date on payments and file C-7 you will slightly delay the loss of the property. It is most accurate to say, you must pay for it in full, or lose it...your mortgage will NOT be discharged and you keep the secured property. In C-13, you probably can get a reasonable amount of back payments included in the plan...and if you complete it, still have the house and remaining mortgage. Of course, once again, if you can't afford the house, it ain't going to matter for long...and in fact, because the C-13 plan essentially increases your payment....you need to know you can afford it well. Now back to that State exemption thing: Many haave an exemption for the amount of EQUITY, that is amount of value above the mortgage debt, that you have in the home. These amounts are frequently suprisingly small.....like $20,000. In essence, if you go BK living in a place that is actually got equity...that is value above the loan (or no loan)...you ain't going to be allowed to keep it and not pay those others you rightfully owe...whose real contention would be..you used the oney intended to pay the to buy yourself a house.

Answer 6

Maybe. A number of factors are involved in whether or not you will lose your house in a bankruptcy filing. Frequently, but not always, the house is different. If the mortgage payment is up to date, it is usually not a part of bankruptcy. However, state laws differ. Federal rules differ. If it looks like fraud was involved, you can lose your house. == ans == The FEDERAL laws are the same everywhere. Some States have specific exemptions that the FEDERAL Bankruptcy court (all BK are there) will allow you to use. Simply, if you are not up to date on payments and file C-7 you will slightly delay the loss of the property. It is most accurate to say, you must pay for it in full, or lose it...your mortgage will NOT be discharged and you keep the secured property. In C-13, you probably can get a reasonable amount of back payments included in the plan...and if you complete it, still have the house and remaining mortgage. Of course, once again, if you can't afford the house, it ain't going to matter for long...and in fact, because the C-13 plan essentially increases your payment....you need to know you can afford it well. Now back to that State exemption thing: Many have an exemption for the amount of EQUITY, that is amount of value above the mortgage debt, that you have in the home. These amounts are frequently surprisingly small.....like $20,000. In essence, if you go BK living in a place that is actually got equity...that is value above the loan (or no loan)...you ain't going to be allowed to keep it and not pay those others you rightfully owe...whose real contention would be..you used the money intended to pay them to buy yourself a house.

Answer 7

yes, just keep your house exempt from the bankruptcy

Answer 8

If you don't make the payments, then yes.

Answer 9

Only if you don't reaffirm on property.