Can I keep one of my homes if I file for chapter 7 or chapter 13 bankruptcy? 10 Answers as of May 17, 2011

I have 2 houses, one with equity and one with none. Can I keep one and let go of the other if the lender has a second against the one I want to keep?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
I need more facts to answer your question. How much equity is there in the home that you want to keep? I need to know this and then determine how much of an exemption you have in the home that you want to keep. My best advice: call me for a free consultation.
Answer Applies to: California
Replied: 5/17/2011
Benson Law Firm
Benson Law Firm | David Benson
You may be able to keep one or both homes in either a Chapter 7 or Chapter 13 bankruptcy. The added value of filing Chapter 13 is that you may be able to cram down the value of investment property and may be able to strip a second mortgage on your residence. Talk to a qualified bankruptcy attorney for free to discuss which avenue, given your peculiar circumstances, makes the most sense.
Answer Applies to: Ohio
Replied: 4/11/2011
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
It depends on what your state's exemptions allow you to keep in bankruptcy. If you have too much equity, Chapter 7 may not be an option. Chapter 13 will allow you to keep all the property you wish to but you will have to repay a portion of your debts. You can always choose to surrender property in bankruptcy. You should speak with an attorney to be sure you are able to keep the property you wish to.
Answer Applies to: California
Replied: 4/5/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
People often keep homes when the file for bankruptcy. It does not matter if the property you are surrendering has multiple liens against it.
Answer Applies to: California
Replied: 3/30/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
In Bankruptcy each asset that you own, or property that you have is treated separately. Each state has different exemptions, but in New Hampshire you are allowed up to $100,000 in equity in your primary residence. In the event that you are willing to pay the mortgage and property taxes on a property you may keep it, regardless of whether or not the same lender has a second mortgage on a different piece of property that you intend on surrendering. However, an attorney would suggest that you only keep property that you can afford regardless of whether or not there is equity!
Answer Applies to: New Hampshire
Replied: 3/30/2011
    Law Offices of Geoffrey Nwosu
    Law Offices of Geoffrey Nwosu | Geoffrey Nwosu
    Filing Chapter 13 bankruptcy will definitely help you keep your home. However, it is very advisable for you to consult with a bankruptcy attorney to review your financial situation. It might well be that the best solution will be for you to give up one or both houses. This is especially true if you do not have any income or enough income to fund the plan. Your monthly income will help your bankruptcy lawyer to determine what action will be appropriate for you and your situation. A solid income means that you can keep both houses. Your attorney may be able to reduce or eliminate your unsecured debts to help you pay your secured debts.
    Answer Applies to: California
    Replied: 3/28/2011
    Law Office of Eric Ridley
    Law Office of Eric Ridley | Eric Ridley
    It depends, on how much equity is in each house, and what the homestead exemptions are in your state. Yes, you can permit one to go into foreclosure and be retaken by the lender. Your best bet is to go over all of your options with an attorney, however.
    Answer Applies to: California
    Replied: 3/28/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Is the one you want to keep, the one with equity. If it is, the bankruptcy court may take and sell it, depending on what state you are on and how much equity. At least if you file a Chapter 7. Are you planning to pay the second mortgage ? If there's a lot of equity that the second is attached to, they might foreclose. If there isn't any, they probably won't. Of there's no equity at all that the second mortgage is attached to, you could strip it off in a chapter 13. That might make sense if you really like the house and plan to stay there for a long time. Otherwise, file Chapter 7 and just not paying the second mortgage is often a better plan. Of course all this depends on whether you have income eligibility to file Chapter 7. And it assume you are making enough to pay the mortgage on the house you want to keep.
    Answer Applies to: Virginia
    Replied: 3/28/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    That may be possible. In fact, it may be possible to keep both homes. If you are in my area, please contact me for a free consultation.
    Answer Applies to: California
    Replied: 3/28/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Yes. You can keep whichever house you choose. However, you have to remain current on the payments on house you keep and there may be some advantages right now that you may avail yourself of in a Chapter 13 case if the balance of your first mortgage exceeds the value of your house it would enable you to strip the second. You really must consult experienced counsel to understand all your options and the best chapter for you.
    Answer Applies to: California
    Replied: 3/28/2011
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