Can I Keep My House?

Depending on the situation, many individuals filing bankruptcy keep their homes.  Upon filing bankruptcy all property of the individual becomes part of a bankruptcy "estate".   Individuals filing bankruptcy can "exempt" and keep a certain amount of equity in assets when they file for bankruptcy.   If the house has no equity, then typically it is of no value and interest to the bankruptcy court.

The bankruptcy court, trustee, and creditors are interested in real estate when there is equity in the property (equity = when the house is worth more than the loans against it).   If there is no equity in the property then generally the property has no value to the bankruptcy estate.  If there is equity in the property then individuals filing bankruptcy use "exemptions" to protect the equity in their homes, which should be carefully reviewed with your attorney before filing bankruptcy.  

Thus, if an individual has no equity in their home and they are not facing foreclosure then those are signs that there shouldn't be an issue with the individual keeping their home when filing bankruptcy.  If there is equity in an individuals home then a careful pre-filing review should be done to determine if the available exemptions will protect the property from liquidation.

To learn more about bankruptcy please complete the contact form or call today.

The information on this website is not intended as legal advice, does not imply an attorney client relationship, and you should consult with a professional or attorney regarding the details of your own personal facts and financial situation and state law. Further the information is not warranted to be complete, accurate, or current. Also, may contain personal opinion.