Can I Keep My House?

[flower]

My significant other and I bought a house together 21 years ago. It will be paid for in 15 more years. I have had numerous illnesses and am without health insurance, and now I can no longer pay my credit card bills.

Can I declare Chapter 7 bankruptcy and not lose my house? We always make our house payment on time AND WE ARE NOT MARRIED. My significant other will not be filing for bankruptcy.

Thanks.

[SinkingFast]

What State? What's the current Market Value of the home, and approx how much do you owe on your mortgage?

Exemptions go by State. Are you co-owners on the Deed/Title and mortgage??

[HHM]

Based on the generality of your post, I can tell you really haven't looked into BK that much, so let's back up and get some info....

First, how much equity is in the house. (i.e. how much is it worth today, minus how much is owed).

Second, what state do you live in? Do you know your State's home equity exemption. All States provide some sort of collection exemption for equity in your home up to a certain amount...thus, the equity cannot be used to satisfy the claims of creditor.

Third, since you are not married, how is the home titled.

Fourth, who is responsible for the mortgage payments?

Fifth, how much in Credit Card debt do you have, how much in Medical bill debt do you have?

[flower]

Our house has about $30,000 in equity. Haven't had the house appraised, but just judging by other homes that are sold in our area. Of course, with the housing bubble bursting, that may change. (House worth apaproximately $50,000 with about $20,000 owed.)

Indiana allows an exception of $7,500.

The house is titled in both of our names.

My significant other always pays the house payment.

We do not share credit cards. All credit card debt is mine. We do not share any debts except the house. We do not share checking or saving accounts. I have around $300 in savings. I have an old 1993 car that is paid for and I need for transportation. I make about $4,000 per year because I have a disabling illness.

I have approximately $30,000 to $35,000 in credit card debt.

I would not be in this shape if it wasn't so incredibly difficult to get disability benefits. I'm caught in a catch 22 in that regard.

All of my medical debt has been paid with credit cards.

[Bobby'sGirl]

You are using old exemption figures.

Indiana has $15000 for home, $8000 wild card and $300 cash. Look under the exemptions for Indiana link.

http://bankruptcyforum.com/showthread.php?t=248

[flower]

I checked the above link and it states $7,500 for home. Did I miss something? Thanks

[HHM]

My guess is, since the title is in both your names, (however, do you know "how" it is title, i.e. Joint Tenancy, Tenancy by the Entirety, etc)...then the trustee would only be entitled to YOUR SHARE of the equity, so assuming the house has total equity of $30,000, your share would be $15,000 and that number appears to fit into the Indiana exemptions, so you should be fine.

In any event, given your uncommon situation, you should probably consult with an attorney.

[flower]

Sorry. I checked again and scrolled on down. Haven't seen that new figure of $15,000 as home exeption allowed on any legal sites I've visited, but I believe you.

So, does anyone know if I can keep my house after reading the above info I've posted? Thanks

[flower]

Thanks moderator. Perhaps my significant other should file, too, if he can be allowed another $15,000 exeption. I don't know his debt amount, but I know it is high. Thanks for advice.

[flower]

Also will have to find out how it is titled. Thanks for your help.

Would appreciate advice on how it work if my significant other files.

[HHM]

Since your not married, you can't really file jointly, so unless your significant other has reasons to file BK (other than merely keeping the house), it's probably not a good idea.

I finally found a reference for the $15,000 homestead exemption, but your right, a lot of sights still quote the $7,500 amount.

IC 34-55-10-2
List of exemptions; limitations
Sec. 2. (a) This section does not apply to judgments obtained before October 1, 1977.
(b) The amount of each exemption under subsection (c) applies until a rule is adopted by the department of financial institutions under section 2.5 of this chapter.
(c) The following property of a debtor domiciled in Indiana is exempt:
(1) Real estate or personal property constituting the personal or family residence of the debtor or a dependent of the debtor, or estates or rights in that real estate or personal property, of not more than fifteen thousand dollars ($15,000). The exemption under this subdivision is individually available to joint debtors concerning property held by them as tenants by the entireties.
(2) Other real estate or tangible personal property of eight thousand dollars ($8,000).
(3) Intangible personal property, including choses in action, deposit accounts, and cash (but excluding debts owing and income owing), of three hundred dollars ($300).
(4) Professionally prescribed health aids for the debtor or a dependent of the debtor.
(5) Any interest that the debtor has in real estate held as a tenant by the entireties. The exemption under this subdivision does not apply to a debt for which the debtor and the debtor's spouse are jointly

http://www.ai.org/legislative/ic/code/title34/ar55/ch10.html

The trustee cannot sell what is not yours...so your SO's share of the equity is safe regardless if your SO files or not.

[Bobby'sGirl]

Fortunately for us Indiana filers

The state put new exemptions into force summer of '05 before the new BK rules kicked in. It is making the difference for me in keeping my house.

[Grace]

How will you pay your medical bills after filing bankruptcy? You won't be able to use credit cards, and if you still don't have health insurance, the bills will pile up again, and you won't be able to file again for many years. During that time, it's certainly possible for creditors or medical care providers to sue you and put a lien against the house.

I don't want to be the voice of doom and gloom, but I think it's something to look at. The house is obviously important to you, but if things don't change soon for you financially, you could end up losing it regardless.

I hope things get better soon.

I just wanted to add, have you looked into private insurance or state-sponsored insurance? It wouldn't be cheap, but it might help you save the house in the future.

[danohio2831]

I just wanted to add, have you looked into private insurance or state-sponsored insurance? It wouldn't be cheap, but it might help you save the house in the future.[/QUOTE]


just my input, if there is a medical position present, they will decline you

with my bipolar disorder, i have been declined medical and life of insurance of anykind. i have been trying for 6 months since i been lait off, and no one will touch me.

[flower]

Thanks for the info. It sounds like my SO can file also and will be able to use the exemption, as it sounds like we both can use it individually. Does any one else read it that way? Thanks.

Re: How will I pay my medical bills? I either have to get well enough to be able to work fulltime and get benefits that way, or file for disability. If you work at all, even a small amount of hours per week, that can be held against you getting benefits. They don't tell you that when you file. Quite the opposite. I found this info out through very informative message boards. The older you are over 50, the better the odds of them over-looking a small number of work week hours. Also a challnge to find an attorney who will represent you, if your are working at all.

Another alternative: Sell my house after the housing slump ends and move to another country that has universal health care and doesn't mind if I'm disabled. Can't afford private insurance. What an option, huh?