Can I keep my house if I declare bankruptcy? Answers From Bankruptcy Attorney in Chino

Most people can maintain their homes in bankruptcy if they satisfy certain standards. If you apply for Chapter 7,you must fulfill the following criteria: Read Below the answers from a bankruptcy attorney in Chino.

  • Your mortgage payment is regular.

 

  • You can keep making your mortgage payments after filing for bankruptcy.

 

  • Under your state’s exemption legislation, you can get an exemption.

 

If you’re not clear about what it means to exempt assets, here’s an explanation of how bankruptcy exemptions operate.

When you file bankruptcy, you are permitted to keep a certain portion of your possessions. The types and values of property that can be protected differ by state. Some states enable you to exclude equity from taxes.

If your house includes non-exempt equity—equity which you are not permitted to keep, the bankruptcy trustee will dispose of it to assist your creditors. Your state’s exemption statutes will tell you how often you can deduct.

Filing for Chapter 13 gives you more options for keeping your home, even when you’re behind with repayments or have taxable value in it. You must demonstrate to the court that you have enough monthly income to cover the following expenses during a three- to five-year payback period:

your monthly mortgage payable

 

any past-due balance, and

 

any equity that you are unable to exclude

 

Be careful that you will almost certainly have to pay an extra sum to other creditors, which might be substantial. For example, if your home is valuable, you may be required to pay back all creditors under what is termed a “100 percent plan.”

As a result, spending on a 100 percent plan is unusual, and many people pay far less than they should.

Bankruptcy law is difficult, and you can’t rely on the court or the trustee to guide you through it. If you want to keep your house, you should consult an experienced bankruptcy attorney before filing under any chapter.

 

What assets, if any, may I keep if I declare bankruptcy?

When you file bankruptcy, you are permitted to exempt (keep) assets that you will need to support yourself and your family. The types of assets which you can preserve are listed in your state’s exemption legislation.

 

 

Most states let you keep the following items:

  • Home furnishings such as a sofa, dining table, and beds

 

  • Cookware, plates, and towels are examples of domestic items.

 

  • clothing

 

  • a little bit of equity in a car.

 

  • items required for your company or profession.

 

in addition

 

  • A piece of jewellery

 

Your state’s exemption legislation may permit you to keep more property, such as a portion of the equity in your principal residence.

Most people who declare bankruptcy are able to keep all of their possessions. You should be permitted to do the same if you don’t possess any of the costly assets that are typically lost in bankruptcy, such as a luxurious automobile, a boat, vacation property, or valuable artwork. Even so, it’s critical to understand what you may and cannot retain before filing. You should trust the court to hold you accountable for any errors you make, especially if they concern your property.

It is best to be cautious if you possess something of value. Before filing for bankruptcy, an expert bankruptcy attorney may analyze your assets and advise you on what you can protect.

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