Is my HOME safe in bankruptcy ???

[princessiam]

Hi I read this:

The debtor's aggregate interest, not to exceed eighteen thousand five hundred dollars ($18,500) in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor; however, an unmarried debtor who is 65 years of age or older is entitled to retain an aggregate interest in the property not to exceed thirty‑seven thousand dollars ($37,000) in value so long as the property was previously owned by the debtor as a tenant by the entireties or as a joint tenant with rights of survivorship and the former co‑owner of the property is deceased.

My question is this saying they allow $37,000 total exemption for a home?
I live in a mobile home w/land value about $80,000 & owe around $13,000 on the home yet (not bricked under still considered a trailer). Is my home safe from filing in chapter 7 bankruptcy? I haven't seen much on the subject but hope some of you can shed some light on the subject.

[JRScott]

If you are less than 65 then you can exempt up to 18500 dollars of equity in the property.

If you are single and over 65 and you previously held the property as a tenant by entirety or joint tenant whereupon the other holder has died you can exempt up to 37000 dollars of equity in the property.

If your home/land is valued at 80000 and you only owe 13000 on it, then you have 67000 of equity. (Though you only mention owing 13k for the home so not sure if you also owe on the land)

[princessiam]

If you are less than 65 then you can exempt up to 18500 dollars of equity in the property.

If you are single and over 65 and you previously held the property as a tenant by entirety or joint tenant whereupon the other holder has died you can exempt up to 37000 dollars of equity in the property.

If your home/land is valued at 80000 and you only owe 13000 on it, then you have 67000 of equity. (Though you only mention owing 13k for the home so not sure if you also owe on the land)

Hi
Yes, land is paid for. If I have $67,000 equity then is that over the allowed limit. Most peoples homes are probably near $100,000 etc. My question is: Would my home & property be in any danger if I file chapter 7 also its joint filing not single? Sorry the legal jumble concerning bankruptcy is so foreign to me. Its hard to understand it all. Thanks for your reply.

[JRScott]

Basically if you can't exempt the property whatever you can't exempt you have to repay the state for to keep, that's regardless of what property. So yes there would be a danger that the Trustee would seize the property if you can't exempt the full value.

What state do you live in?

[princessiam]

Basically if you can't exempt the property whatever you can't exempt you have to repay the state for to keep, that's regardless of what property. So yes there would be a danger that the Trustee would seize the property if you can't exempt the full value.

What state do you live in?

Hi JRScott
NC - I owe on this home & plan to keep paying afterwards. I just don't understand the whole exempt thing. Sounds like I may just have to stay in debt. I can't risk my home.

[ansky0007]

To file bankruptcy you have to be insolvent meaning you have NO money to pay your debts. You cant have equity in your home over your exemption allowed. This would mean you have equity in your home and you could sell it or borrow from it and pay off your debts therefore you are not insolvent since you have a means to pay the creditors back.

[getmeoutofhere]

My question, if anyone knows,

Basically if you can't exempt the property whatever you can't exempt you have to repay the state for to keep,

If a person had $50K in equity in their home and wanted to keep, would the state allow you to pay that 50K over say 60 months? In other words, would the state allow you to keep the home, with the equity, but pay back over a period of time? Or would they automatically take the home

[JRScott]

In NC homes held in tenancy by the entirety may be exempt from debts owed to only one spouse.

Basically we'd need a much larger picture of your financial situation.

How much debt are we talking about?
Is any part of the debt student loans? If so how much?
Is any part of the debt back taxes? If so how much?
Is any part of the debt due to gambling? If so how much?

How many member of your household?
What is the gross income of your household in the last 6 months?

When was the last time an appraisal was done on the property?
Is the property one plot of land or several?
How much acreage are we talking about?

[JRScott]

My question, if anyone knows,



If a person had $50K in equity in their home and wanted to keep, would the state allow you to pay that 50K over say 60 months? In other words, would the state allow you to keep the home, with the equity, but pay back over a period of time? Or would they automatically take the home

Depends. Yes they would allow you to pay over time, most likely when you have that much equity you go into a Chapter 13 rather than a Chapter 7. However in a Chapter 13 you have to pay the creditors as much as they would get if your estate was liquidated in a Chapter 7. So yes you could get a 50k payback over 60 months.

In fact that might be an option for the original poster, assuming they can afford the Chapter 13 payments with so much equity.

[princessiam]

In NC homes held in tenancy by the entirety may be exempt from debts owed to only one spouse.

Basically we'd need a much larger picture of your financial situation.

How much debt are we talking about?
Is any part of the debt student loans? If so how much?
Is any part of the debt back taxes? If so how much?
Is any part of the debt due to gambling? If so how much?

How many member of your household?
What is the gross income of your household in the last 6 months?

When was the last time an appraisal was done on the property?
Is the property one plot of land or several?
How much acreage are we talking about?

Hi
About $30,000 unsecured credit cards
None of the other things.
3 in household
gross for 6 mo. is $12,643
since got it on the appraisal +10 years ago
I was basing it on my prop. tax value
one plot of land - less than a acre

Thank you for your time. Happy Halloween to everybody!

[JRScott]

Tax values always generally run behind the market. You might ask a real estate agent to come by and give you an appraisal. You might even tell them it is possibly for a bankruptcy otherwise they might inflate the numbers slightly.

Happy Halloween

Probably I don't think you could do a Chapter 7, most likely you'd have to do a chapter 13 with a 100% payback over 60 months time. The problem is I don't know if you could make the payments probably be around 500 dollars a month.

YOu could ask a lawyer about that though .

(Wage Garnishment incidentally in NC is mostly illegal except for unpaid taxes, child support, alimony, criminal fines/restitution, and federally backed student loans....sadly the page is under construction at the ncdol.com website or I could quote you specifically.)