Legal Question in Bankruptcy in California
On a Chapter 7 where they say we could be made to sell our house: My husband is going to file BK and is the only one on the loan he got for a business venture that failed and now he can't afford to pay it back. However I 'm not filing and yet my name is on the house also. We have a homestead protecting 175,000 and we owe 180,000 and our home is only worth 300,000 tops. Is it best to go Chapter 7 and still keep our house, or file chapter 13 and still have to repay for 5 years still with some savings but a still an amount not affordable for us?
2 Answers from Attorneys
If you are concerned about your house being in a Chapter 7, find an experienced bankruptcy attorney and get an appraisal done on the house. If a Chapter 7 trustee thinks that he or she can sell the house for a price generate money for creditors after paying off the mortgage, pay you the homestead exemption and the costs of sale (about 8%), then the trustee might opt to sell the house. If you are afraid of losing the house in a Chapter 7, a Chapter 13 plan is a possibility.
An experienced attorney can look at your situation and explain in more detail about whether your home would be at risk in a Chapter 7 or if you could come up with an affordable Chapter 13 plan payment. There really isn't enough information provided yet to tell you specifically what you should do.
Given the limits of the information you provide it sounds like a chapter 7 case. However I suspect that there may be more to it that that. How about arrears on the mortgage, property taxes etc. Do you have other liens on the house?
It is a case for an experienced bankruptcy attorney and you should not attempt to handle this matter yourself. http://www.absolutebankruptcy.org
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