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HOUSES AND BANKRUPTCY
Seattle Bankruptcy Attorneys
Call 206-624-9605 for a Free Case Evaluation
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Seattle, WA Bankruptcy Attorney
David M. Lux
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One of the biggest concerns for homeowners considering filing for bankruptcy is whether they can keep their homes through the bankruptcy process. Homeowners typically file for bankruptcy when they lack considerable equity in their home. Therefore, the vast majority of homeowners do keep their homes in these proceedings. Below is a guide for homeowners filing for bankruptcy.
If I am current on My Payments,
Can I keep My Home?
Normally, yes. As long as you are current on your home obligations (mortgage, taxes, dues, etc.), your secured mortgage lenders cannot take your home just because you filed bankruptcy. The only other issue the court analyzing your home is for equity to pay creditors. For most people, this is not a problem.
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| The law provides for a generous allowance of home equity before the court would look to your home to benefit and pay to your creditors. In most cases, the allowed equity is $125,000 after deducting for costs of sale of your home. Therefore, the bankruptcy code allows you to keep your home with as much as $125,000 of equity. |
Do Not Trust the County Assessor to be Right
Your property is usually worth a great deal more. Our office will do market analysis of your home done before your file bankruptcy to ensure the value and the amount of equity in your home.
If I'm Behind on My Payments,
What Can I Do to Keep my home?
First, Chapter 13 bankruptcy allows you to catch up your payments over a three-year period. Second, Chapter 7 bankruptcy allows you the protection of the court for a short time period to catch up on your payments or make arrangements with the bank. Finally, remember that you can always attempt to refinance your home once the bankruptcy is over.
For a free phone consultation about your home and the bankruptcy process, call 206-624-9605 to speak with one of our experienced Washington State bankruptcy lawyers now.
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