Can I get a bankruptcy if I have equity in my home? 5 Answers as of November 12, 2010

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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Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
Normally you are allowed a homestead exemption, how much depends on your state law.
Answer Applies to: South Dakota
Replied: 11/12/2010
The Shakoori Law Group
The Shakoori Law Group | Rachelle Shakoori
In California, for an individual you can have $75 k of equity and for a family you can have $100 k of equity to protect it under homestead exemption. There are additional amounts for older or disabled people. You can usually deduct 8% from the value of the home for cost of sale in calculating how much equity you home has.
Answer Applies to: California
Replied: 11/9/2010
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Depending upon where you file your case, how old you are and whether or not you are married, the equity in your home could be exempt from taking by the trustee. Here in California, $75,000 is the standard equity exemption and you could qualify for more.
Answer Applies to: California
Replied: 11/9/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
There is no way to answer your question without knowing which states exemption laws are applicable to your case, and that is determined by where you have lived for the last 2 years (or 2 years plus 6 months if more than one place). They cannot take your home in a Chapter 13 case, but you would have to pay out at least as much as your creditors would get in a Chapter 7 (which, as I said before, depends on what homestead exemption you have available to you, as well as what other assets you have which need to be protected).
Answer Applies to: California
Replied: 11/9/2010
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