Legal Question in Bankruptcy in Georgia

What if my house if worth less than what I owe?

I am about to file Chapter 7 and I plan on giving up the house that is currently worth $100,000, but I owe $125,000. Will I have to pay the difference of $25,000? I can imagine this is a popular problem with the depressed real estate market.


Asked on 10/18/04, 8:47 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: What if my house if worth less than what I owe?

In a chapter 7, any balance is wiped out by the Chapter 7. You would not have to pay the deficiency.

If you are contemplating a Chapter 7, and live in metro Atlanta, you may wish to download our free worksheet at www.glenashman.com and then bring it to my office for review.

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Answered on 10/18/04, 8:56 pm


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