Legal Question in Bankruptcy in Maryland

Re: House

There is a possibilty that you can save the house and file a chapter 7. You must list all debts and assets. I would need to carefully review the value and how much is owed on the house to determine whether it reasonable to file and not lose the house. You may contact me to set up an appointment.

Re: House

The short answer is "maybe". First of all, if you state that you have $15,000.00 in equity, are you taking into account the costs of sale? It is possible that, even if your home were not protected, it would not be sold. However, what concerns me in your question is that you said "most" of your other debt is in your name alone. If there is no joint debt, and the house is DEFINITELY titled as tenants by the entireties with your wife, then it will be protected from creditors if you alone file. However, your question leads me to believe that there may be some joint debt. Jointly-held property can be sold by the Bankruptcy Court to satisfy joint creditors. You must list all of your creditors, not just the ones that are in your name alone. If you have any joint debts, they must be listed, as well. It is likely that, if you make sure that the joint creditors continue to be paid, they will not complain and the home will not be sold. You must be very careful if you file a Chapter 7 in this situation.

Re: House

I've looked at the other responses. From your zip code, it looks like you are in Frostburg, so chances are $15,000 is more than the costs of sale and you really do have equity in the house. But there are exemptions available that may apply to the equity in the house (depending on what other assets you have), even if the joint debt would preclude you from relying on the exemption for property owned by the entireties with your spouse. You do need to be careful, and you may need to do a little "pre-bankruptcy planning" in terms of making sure joint debt is dealt with, but you can probably file Chapter 7 and save your house. We practice in Cumberland, and do a lot of bankruptcy work, so feel free to call or email us if you have further questions.