What Happens if you file Bankruptcy and you own a house?
Do I lose the house, Please let me know ASAP! Thanks everyone
2007-07-27 03:34:41 · 4 answers · asked by RaiKwon 1 in Business & Finance ➔ Personal Finance
It depends on what type of bankruptcy you file. If you file Chapter 7 Bankruptcy, you have a homestead exemption. This is an amount of equity you can have in your home that you will not be forced to liquidate. If your equity is lower than the homestead exemption, you can choose not to include your mortgage as part of the debt you are getting rid of, but this means that you have to continue to pay your mortgage.
2007-07-27 03:41:11 · answer #1 · answered by bkwrm006 2 · 0⤊ 0⤋
Not necessarily...you can reaffirm on the house but if your payments are behind you might be in the same boat as you were before you filed.
When you declare bankruptcy there is an automatic stay on any collections, forclosures, or repos. You have the option of reaffirming debts like your house and one auto per person (so you you have motorcycles or dirt bikes you couldn't re affirm on those). Once the bankrupcy is discharged and the reaffirmation papers are recieved by the mortgage company it is as if you never filed bankruptcy, so if your payments are way behind then you will have a problem once the bankruptcy is discharged.
2007-07-27 11:01:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If the home is "Homesteaded", no one can touch it, unless it is listed in bankruptcy filing.
If one fails to pay the mortgage it can be repossessed.
2007-07-27 10:46:34 · answer #3 · answered by ed 7 · 0⤊ 0⤋
Nothing. Your house (that you reside in) is not included in a Bankruptcy.
2007-07-27 10:39:07 · answer #4 · answered by Jeff 4 · 0⤊ 0⤋