Keeping the House in a Chapter 7 Bankruptcy

Posted by Wesley Scott on July 28, 2020 at 12:29 PM
Wesley Scott

mn-bankruptcy-homestead-exemptionsBankruptcy requires extensive financial disclosure. All debts are listed in your bankruptcy and as well as all of your assets. Even the debts on secured property and the non-dischargeable debts are listed in your bankruptcy. 

Your house will be listed in your bankruptcy petition-even if you want to keep it.  Your house is likely your biggest debt and often times your biggest asset. Both federal and state bankruptcy exemptions have an exemption to protect the equity in your home. And during and after the bankruptcy you will continue to pay your mortgage as normal.

It is important to note that you will be asked to value all of your property, including your home.  This can sometimes be difficult if you have not had a recent appraisal or the home is older. But you do want to have a good basis for the valuation of your home-you will likely be asked how you determined the value of your home. 

The question then becomes-do you want to keep your home. Things to consider: is the mortgage payment too high, is it sustainable for you in the long run, is the house underwater, or do you have a lot of equity in the home. Keeping a house it not always the best option. Sometimes, walking away can provide you with much relief.  By surrendering the home in the bankruptcy you can really have a fresh start. 

Call Now for a Free Strategy Session from a MN Bankruptcy Lawyer from Kain & Scott

Whether, you decide to keep your home or surrender it, bankruptcy can offer you financial relief.  We can assist you in determining what options are best for you. Contact the attorneys at Kain and Scott and see us at www.kainscott.com. You will be glad you did!    

 

 

 A Word from a MN Bankruptcy Attorney, Wesley Scott