Will I Lose My House in Chapter 7 Bankruptcy?

As bankruptcy lawyers here in Georgia we get this quite a bit. People love their homes. In fact, most people end up letting everything else slide so that they can keep their home. The answer is that it depends.

Are you up to date on your payments?

If you have keep up your mortgage payments and don’t have a lot of equity that can be used to pay off unsecured creditors, you’re probably safe. There is a difference between foreclosure and bankruptcy. If you’re not in foreclosure then your home is safe from being taken by the trustee, unless you’ve somehow accrued a great deal of unsecured debt and home equity. This rarely happens, but if it does the Trustee may decide to try and take the house to pay the debt. However, you do have options in some cases under the Homesteader’s Exemption.

Is your unsecured debt under $21,500?

The Georgia exemption systems allows homeowners to use up to $21,500 as an exemption or $43,000 if a married couple is filing. This exemption covers homes, condominiums, co-ops and funeral plots.

When it comes to figuring out the best way to keep your home you really want to speak to an attorney. It may be that Chapter 13 is the best option where you are allowed to make a monthly payment to pay back your creditors if you are late on mortgage payments. We understand that people are attached to their homes and try to figure out a way for people to keep this investment.

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