In most states, a debtor can keep the home equity that they have, up to a certain limit. This amount depends on the bankruptcy exemptions that you qualify for. These exemptions are divided into federal and state categories. Some states allow you to choose which one you want to use, and state exemptions vary widely myworldnews24. For example, South Carolina’s exemption amount is $58,225, while New York’s is up to $165,550 in some counties.
However, if you have a mortgage and owe money to your mortgage company, you cannot file bankruptcy and keep your home. When you file for bankruptcy, your lender will fight your foreclosure. If you don’t have enough income to pay off the mortgage onlinewebworld24, you can seek loan modifications or file a Chapter 13 instead. A Chapter 13 filing will allow you to propose a plan to catch up on your arrearage payments.
The amount of equity that you have in your home can influence whether you can keep your home in a chapter 7 bankruptcy indvox. For example, if you have more equity than the current mortgage balance, a trustee may liquidate your home to pay off the creditors. This process may seem confusing, especially if you’re already stressed out. Fortunately, this article can help you better understand the process hqlinks.
Even though you can’t keep your home in bankruptcy, you can still protect certain assets. The federal homestead exemption protects a certain amount of equity in your principal residence. It’s worth mentioning that your state may have different exemption laws than federal ones apninews5896. Make sure to research your state’s homestead exemption laws and consult a bankruptcy attorney to determine what you can keep.