Can I keep my house and file chapter 7? 31 Answers as of July 15, 2011

I have medical bills and credit card judgements and would like to file chapter 7 but keep my house that is going into foreclosure. I have about $40,000 of equity.

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
In California, the equity in your home is protected by an exemption of at least $75,000.00 if you live in your home.
Answer Applies to: California
Replied: 7/15/2011
Benson Law Firm
Benson Law Firm | David Benson
You may be able to keep your house, but you'll need a bankruptcy lawyer with experience in foreclosure defense.
Answer Applies to: Ohio
Replied: 7/15/2011
Tucker Legal Clinic
Tucker Legal Clinic | Samuel Tucker
Yes. You must continue to pay the note on the house. If you are behind on mortgage payments a Ch13 bankruptcy may be your only resort.
Answer Applies to: Mississippi
Replied: 7/15/2011
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
If you are delinquent on your house payments and are facing foreclosure, then filing chapter 7 bankruptcy would not allow you to keep your home simply by filing the bankruptcy. The house cannot be included in a chapter 7, and b/c you are facing foreclosure, the bank will continue with that path since there is nothing that the bankruptcy can do in a chapter 7 to prevent it. What you may see is a delay in the foreclosure upon filing chapter 7 bankruptcy, because and automatic stay will go into effect upon filing, but it will only be temporary and will eventually be lifted, allowing the bank to continue with the foreclosure process. What you might try doing is either opting for a chapter 13 bankruptcy, assuming you have enough wages to allow payment plan, in which case you could include the mortgage arrears into the repayment plan, as well as your credit card and medical debt, which would allow you to keep your home. Another option may be to try for a loan workout with your mortgage lender to see if they will work with you to add the arrearages to the balance of the loan and drop the interest rate so that you would have an affordable payment going forward, and then after that is completed and you are now current on the loan, file a chapter 7 bankruptcy to resolve the unsecured debt. I would definitely recommend speaking with an attorney who is experienced in both bankruptcy as well as loan workouts to assess the big picture here between the house and the unsecured debt to review further details about your situation in order to determine which course of action is your best interest.
Answer Applies to: California
Replied: 7/15/2011
Apple Law Firm PLLC
Apple Law Firm PLLC | David Goldman
In Florida, you can keep your home in a Chapter 7 Bankruptcy
Answer Applies to: Florida
Replied: 7/15/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    In Washington state you may have up to $125,000 in equity and still file for chapter 7 bankruptcy while keeping your home.
    Answer Applies to: Washington
    Replied: 7/14/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    If you are behind in your house payment and in foreclosure you should consider filing a chapter 13 payment plan. If you file chapter 7 you will need to catch up with the back payments in order to keep the house.
    Answer Applies to: California
    Replied: 7/14/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Yes. Simply stay current on your house payment.
    Answer Applies to: California
    Replied: 7/14/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    If you have that much equity the trustee will probably want to sell. If you can find a Ch 13 that will pay off the late payments you could keep the house.
    Answer Applies to: Virginia
    Replied: 7/14/2011
    Mark Anderson, Attorney at Law
    Mark Anderson, Attorney at Law | Mark Anderson
    You need to make sure you file a homestead before filing bankruptcy.Also, if you have a loan you need to keep your payments current and pay the taxes.
    Answer Applies to: Montana
    Replied: 7/14/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    You may be able to do so, but the amount of equity you have in your home could make it difficult to discharge your other debts and still keep the home.
    Answer Applies to: California
    Replied: 7/14/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    In order to keep your house after a Chapter 7 bankruptcy, you will need to stop the foreclosure by curing the debt. This means that you need to catch up all of the amounts you are behind before the foreclosure sale. If you cannot, you will lose your house. A Chapter 13 plan may be a better option if you will have a hard time getting current because the mortgage arrears can be spread out over 36-60 months which can make it much easier to get caught up. You should discuss your situation with an experienced attorney.
    Answer Applies to: Colorado
    Replied: 7/14/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Maybe. In Georgia you can only protect $10K in equity (20K for two owners), but remember you add to the value the costs of sale, and given a bad real estate market, your numbers may work. See a lawyer to run the numbers. Note that if you don't file and get sued, those suits will eventually become liens on your home (another reason to look at bankruptcy).
    Answer Applies to: Georgia
    Replied: 7/14/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    I may be possible to keep the house if you have the ability to claim an exemption for the house to protect the equity. However, you still have to resolve the foreclosure problem as a bankruptcy will not prevent the bank from eventually foreclosing if you do not make the payments or pay the past due amount.
    Answer Applies to: California
    Replied: 7/14/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    A Chapter 7 will get rid of the med bills and credit cards. It will temporarily stop the foreclosure process, but without going into the technical details, once the case closes, the lender may initiate or resume foreclosure proceedings. Now the only question is what other assets you have. The $40,000 of equity is exempt, but one would have to know what other assets you have to make sure they are exempt as well. This is something for a bankruptcy attorney (like myself) to go over with you.
    Answer Applies to: California
    Replied: 7/14/2011
    Loveless Law Firm, LLP
    Loveless Law Firm, LLP | Andrea Loveless
    Yes, you may file and not include your home
    Answer Applies to: California
    Replied: 7/14/2011
    Dan Shay Law
    Dan Shay Law | Daniel Shay
    If you want to stop a foreclosure and keep your house you are going to have to file a Chapter 13 or obtain a loan modification that makes you current. Your arrears will be paid in the 13 and the medical debt may only get 1%. The equity is protected under 704 homestead exemption.
    Answer Applies to: California
    Replied: 7/14/2011
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