House-equity-Chapter 7?

[momof3b1g]

Has anyone not been able to exempt all of the equity in their home? How much was non-exempt and what happened? Did they say you had to pay the difference to keep your home? Or did they say it wasn't enough to worry about?

We owe $101,000 on our home. We can exempt $40,400. $42,450 if we use the wildcards. The value of the home is $144,900.

What happens if they take the home, do you get to stay until its sold?

[momof3b1g]

ttt

[ansky0007]

Has anyone not been able to exempt all of the equity in their home? How much was non-exempt and what happened? Did they say you had to pay the difference to keep your home? Or did they say it wasn't enough to worry about?

We owe $101,000 on our home. We can exempt $40,400. $42,450 if we use the wildcards. The value of the home is $144,900.

What happens if they take the home, do you get to stay until its sold?

If the true value of the home is $144,900 and you owe $101,000 there is nothing there for them. To take the home from you they would have to pay roughly 10% in realtor fee's etc. So $144,900 - 10% = $130,410 minus your exemption $42,500 = $87910 which is less than you owe so there is nothing in it for them.. You are safe on the home and they would not have an interest in it.

[HHM]

You will be fine, you are on the borderline with the equity, and as was pointed out, the trustee must ultimately factor in the cost of sale to determine if there is any benefit to your creditors.

[CompTweaker]

Yep, you have nothing to worry about. The exemption amount is there to cover the equity, not the full value of your home. So use your wildcard coverage for other things. Plus like HHM said, the costs involved in taking a home and selling it to pay creditors is a hassle. And before the trustee took your home, they would have to pay that exemption amount to you.

[momof3b1g]

But wouldn't they say "hey if you want to keep the house pay us the difference of the equity and what you exempt" It might only be a couple thousand but money we don't want to have to pay. Its hard trying to figure out how the trustee will think. Will they not say anything because its not worth it for them or make us pay?