Can I get a bankruptcy if I have equity in my home? How? 12 Answers as of May 12, 2015

I owe $25,000 and it is worth about $100,000. I cannot get a loan. Will they take my home if I file for chapter 7 or chapter 13?

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
You are entitled to an "exempt portion" of the equity in a home. In Colorado, a $60,000 homestead exemption is what is permissible, unless you are 60 or older, or are handicapped or have a handicapped dependent. Meet with an experienced lawyer face to face to get answers to your questions. Sometimes people will file a Chapter 13 to keep their homes. Again, an experienced lawyer can explain all of your options. Most lawyers worth their weight in salt charge a fee for the consultation - don't skimp here, you have too much to lose! Good luck!
Answer Applies to: Colorado
Replied: 5/12/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Chapter 13 the trustee does not take homes. And depending where you are located in NY, you are entitled to a homestead exemption, you can look online. So you are allowed to have equity up to your exemption amount in either chapter 7 or 13.
Answer Applies to: New York
Replied: 5/12/2015
Patrick W. Currin, Attorney at Law | Patrick Currin
You can shelter the equip in your home but not much else.
Answer Applies to: California
Replied: 5/12/2015
Ronald K. Nims LLC | Ronald K. Nims
Depends on the homestead exemption in your state. For example, the Ohio homestead exemption is $125,000. So the $75,000 of equity would be protected.
Answer Applies to: Ohio
Replied: 5/12/2015
Law Offices of Joseph A. Mannis
Law Offices of Joseph A. Mannis | Todd Mannis
In California you are entitled to exempt (protect) $75,000 of equity if you're single, $100,000 of equity if you're married and/or have kids, and $175,000 of equity if you're over 65 or disabled. Judging from the numbers you gave, you should be all right, but you'd want to make sure of those numbers to the penny.
Answer Applies to: California
Replied: 5/12/2015
    Stephens Gourley & Bywater | David A. Stephens
    In Nevada if you were residing in the home the equity in that sum would be exempt and the trustee could not take your home.
    Answer Applies to: Nevada
    Replied: 5/12/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    State laws called exemptions can be used to protect the equity in your home under provisions called homestead. But you absolutely must live in the property to use these laws. The amount you can protect in Nevada can range from $155,675 to $550,000 depending on how long you have owned the property.
    Answer Applies to: Nevada
    Replied: 5/11/2015
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Depends on some factors. You need to speak to a bankruptcy professional to determine what you need to do.
    Answer Applies to: Florida
    Replied: 5/11/2015
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You really must speak to an experienced bankruptcy lawyer in your jurisdiction who does both chapter 7 and chapter 13 work. The amount of equity one can have and protect in a home varies significantly from one state to the next. Do yourself a favor and schedule a meeting with a good bankruptcy lawyer and seek guidance.
    Answer Applies to: Colorado
    Replied: 5/11/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    This depends primarily on the homestead exemptions applicable in your state. Under the federal exemptions, you can protect only $45,950 of equity. Therefore, if your equity is $75,000, your non-exempt equity would be $29,050. The state exemptions may be better or worse than that. If you filed under chapter 7, you would have to pay the non-exempt equity or the trustee would take your house. If you filed under chapter 13, you would have to pay the equivalent of your non-exempt equity to your unsecured creditors through your chapter 13 plan payments. So if you are well over the homestead exemptions, a chapter 13 may be a better route although you would have attorney fees and the trustee's commission which would also have to be covered in your payments.
    Answer Applies to: Oregon
    Replied: 5/11/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Using the Wisconsin list of exemptions, you can exempt $75,000 of equity n the home, double if you are married and filing jointly. So you're likely safe. The lender will probably ask you to reaffirm the underlying obligation. Discuss with your lawyer (and you need one in a bankruptcy) the merits or otherwise of reaffirming a mortgage note. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 5/11/2015
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    In a Chapter 7 bankruptcy, you are allowed to exempt a certain amount of equity in your primary residence. The amount depends on your age, your marital status and whether you are disabled. To find out the exemption amount you are entitled to, consult with a qualified bankruptcy attorney. Good luck!
    Answer Applies to: California
    Replied: 5/11/2015
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