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Maybe but not normally. Generally speaking, you can keep your home during a Chapter 7 case so long as you "reaffirm" the debt to the mortgage company during the case. This means you contact the mortgage company and tell them you want a "reaffirmation agreement," then they will send you one and you sign it, they sign it, and you file it with the court. This reaffirmation agreement puts you back on the hook legally for the mortgage debt, but lets you keep your home. In other words, it allows the mortgage to pass through the bankruptcy unscathed. There are a couple of roadblocks to this though: (1) If you are not current on your mortgage payments, the mortgage company will usually not allow you to reaffirm the debt. So, generally people in Chapter 7 must be current on mortgage payments to be able to keep a home in a Chapter 7. (2) If you have too much equity in the home, the Bankruptcy Court may seek to sell the home. In other words, each State says how much equity in residential real estate a person who files bankruptcy in that State may protect. If you go over this amount, the Bankruptcy Court can sell the home to get that unprotected equity to give to your creditors. For example, in Indiana each person may protect $15,000.00 equity in residential real estate. So, if John files bankruptcy in Indiana and he owes $70,000 on his house and his house is worth $80,000, he is fine since he only has $10,000 in equity ($80,000 value minus $70,000 mortgage) and he is safe for up to $15,000. But, say John owes $70,000 on his house and it is worth $150,000. Now, John has $80,000 in equity ($150,000 value minus $70,000 mortgage) and he can only protect $15,000, so the Bankruptcy Court would sell the house, pay off the mortgage, give John his $15,000, and keep the remaining $65,000 to give to creditors. So, to keep a house in Chapter 7 be sure you are current on the mortgage and check and be sure you are within the amount of equity you are allowed to have in your State. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!

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โˆ™ 2007-05-12 15:56:34
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Q: Can you be forced to sell your home if you declare bankruptcy?
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Can you sell a home that is in bankruptcy?

No.


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Can you ask to have your Chapter 13 bankruptcy dismissed before your confirmation hearing because you want to sell your home?

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Should you sell your shares if the company will declare bankruptcy?

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Can you sell your home and buy another if you are in a chapter 13 bankruptcy?

i wouldn't sell it but instead invest in it till it adds value


Can you sell your home in chapter 13 bankruptcy?

Don't sell the home without legal council. It'll be impossible to re-buy later (given the scant information I have at hand).


Can you sell your home if you are under chapter13 bankruptcy?

Yes, but you must get permission from the Court. You do not technically own the home while you are in the bankruptcy - it is property of the bankruptcy estate. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.


If you have never been late on mortgage payments and file bankruptcy can the trustee make you sell your house to have more income to pay creditors?

If you have a lot of equity they can take your house, but if your loan is about what the house is worth then they don't want it..... They want to be able to sell somthing to pay the creditors.... It is very rare for a home to be seized and sold in bankruptcy; generally it is done voluntarily by the debtor/filer because they cannot manage the mortgage payments or a reaffirmation agreement is not possible. The state homestead exemption is what protects a home from a forced sale in bankruptcy or in a creditor lawsuit.


When can you sell your car after filing for bankruptcy?

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How long do you have to wait to sell your home after a bankruptcy is discharged?

In most cases, you should be able to sell the property immediately after the case is close. However, you still shold consult a qualified bankruptcy attorney to review your case before taking further action.


Can you sell property after filing bankruptcy?

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If you put a bid in for a home for sale by Aegis Mortgage Corp and they have filed for bankruptcy will they still be able to sell it to you?

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If you have assets in your home can you be force to sell it if you file bankruptcy?

If the value of the assets greatly exceed the allowable exemptions, then yes they can be seized.


Can you sell your house while in bankruptcy?

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Can you sell your home while under bankruptcy?

Yes..However, an attorney should answer this question..I do believe the bankruptcy court must approve of the sale..Any proceeds from the sale that you may pocket, could be used to to pay creditors, if the bankruptcy court orders it.


If you filed bankruptcy would your house be foreclosed on?

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If you filed bankruptcy and have decided to sell your house Do you have to let the realtor know about the bankruptcy?

If you filed for bankruptcy and the title company knows about it, then you cannot sell your house. Your title is not free and clear so a buyer could not purchase. It also depends on the bankruptcy, you should talk to your lawyer.


Can you sell your home after you use it as collateral?

No, you cannot. The moment you declare your home as collateral, the bank would take control of the home documents. Until you finish repaying the loan fully, the bank would not release the documents. During this period, trying to sell your home is a criminal offense and the bank can have you jailed for this


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Can you sell your property in bankruptcy and what happens to the funds of the sale?

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Can a you be forced to sell your home or car to pay for unpaid credit card debt in North Carolina?

Yes that can hapen any where.


If the bank gave you a home equity loan and now the property value is less than the combined owed on the 2 loans and you sell the property and there is not enough money to go around can they come af?

Absolutely. You should not have sold the property under that condition. If you cannot pay the loans, the only way out of the debts is to declare bankruptcy.


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