Legal Question in Bankruptcy in Indiana

bankruptcy and equity in home

I have 40,000 in equity on my home and owe 45,000 in credit card debt with bad bad credit. I am unable to refinance mortgage and still pay off remainder of bills.

If i file chpt. 7 bk will i lose the equity in home and how is it that they acheive this?


Asked on 3/02/03, 12:15 pm

1 Answer from Attorneys
John Bator Bator Redman & Shive

Re: bankruptcy and equity in home

You are allowed to exempt up to $15000.00 of equity in your home (if married-otherwise it's $7500) The Trustee could sell your home, pay your mortgages, taxes and the costs of the sale, then you would get the next $15000.00 and the rest would go to your creditors. There are other possible solutions that might work for you. I strongly recommend that you consult a bankruptcy specialist-most offer free initial consultations. Hurry since time is your enemy and your options grow more limited as time goes by and the debts mount.

Good luck!

John E. Bator

Bator Redman Bruner Shive and Ludwig, P.C.

317-685-2426

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Answered on 3/02/03, 12:47 pm


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