If you are considering filing Chapter 7 bankruptcy, one of the most common questions you may have is: “Can I keep my house after bankruptcy?” The answer depends on a few different factors Beenz. If you owe more than the value of your home, you may want to consider filing Chapter 13 instead. This option allows you to keep your home and get your payments caught up over the course of three or five years.
When you file for Chapter 7, the trustee will look at your current mortgage and home equity to determine if you are eligible to keep your home. You can keep your home if you can afford it, but you should know that you cannot have too much equity easysolution24. Equity is the amount of money you have in your house after paying off the mortgage and other debts. This limit is called your “homestead exemption” and varies by state. In Kentucky, this limit is $23,675 while in Indiana it’s $19,300. In either case, you and your spouse can claim the same amount of exemption thedigitalscale.
Filing for Chapter 7 can also save your car. If you are able to get a fair market value appraisal of your home, you may be able to keep your car and house world247zone. This is especially important if you still owe money on your car. Chapter 7 is an important option for people who want to keep their home. It’s also important to understand that bankruptcy does not mean you will lose your house; it just means that you’ll have to sell it forexbit.