Will my second house be exempt if I file bankruptcy? 8 Answers as of June 18, 2015

I bought a home when the market was low have a huge amount of equity so I took out some to put down on a new home and to fix it up now it's not selling and I can not afford both if I file bankruptcy will my new house be exempt? Can I just give the bank my original home even with the equity out it still under price to all the comparables.

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
The second home is not exempt (income property is never exempt in Colorado). I don't understand the second part of the question, so I can't address that matter.
Answer Applies to: Colorado
Replied: 6/18/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
You really need to speak with an experienced bankruptcy lawyer. The answers to your questions are not simple, and will be determined by a number of factors including which property you live in, what the amount of net equity is in your home, whether there is net equity in the other property, and which state you live in. Whatever you might pay in legal fees will be well worth it considering what is at risk!
Answer Applies to: Colorado
Replied: 6/18/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
When ever real property is involved you need to see a lawyer and give him/her all of the facts. Not enough information here to answer this.
Answer Applies to: California
Replied: 6/18/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
You are only allowed to claim one house as your homestead and you had better be living in it. In addition, unless you have lived in your new home for more than 3.3 years, you do not get to claim the maximum homestead exemption available. The loopholes on this exemption can hang you, so you can either obtain experienced legal advice or learn the hard way.
Answer Applies to: Nevada
Replied: 6/18/2015
Charles Schneider, P.C.
Charles Schneider, P.C. | Charles J. Schneider
The question cannot be answered without more information such as the values of the homes, amounts of any mortgages, your age, marital status, etc. The question is more complicated than can be answered by emails. Set up an initial free consultation.
Answer Applies to: Michigan
Replied: 6/18/2015
    Ronald K. Nims LLC | Ronald K. Nims
    No, your new house won't be exempt. The homestead exemption means that you've got to live there. Giving the deed back to the bank only works if the bank agrees. And banks usually don't agree.
    Answer Applies to: Ohio
    Replied: 6/18/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    You must discuss this matter with an experienced BR lawyer. Your question requires a great many more facts before it can be answered responsibly. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 6/18/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    Bankruptcy might not be your best option unless you have a lot of debt other than secured property debt. You should talk with the lender about the difficulty you're having with the payments and see if they can suggest a solution. They might be willing to modify the mortgage or agree to let you sell the original home and put a new mortgage on your new house. Contrary to popular belief, bankruptcy does not automatically rid you of property. You still have to go to the trouble of getting the lender to take your deed or helping them sell it. If you're thinking of bankruptcy as a means of unloading your property, you may find it does not solve your problem.
    Answer Applies to: Oregon
    Replied: 6/17/2015
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