Legal Question in Bankruptcy in Maryland

Re: Loose home during Bankruptcy?

If you file Chapter 7, you put your home at risk if there is equity in it (market value less any mortgages or other secured claims) that cannot be exempted. In Md., you only have a few thousand dollars of exemptions, and often you need much of this to exempt personal property (vehicles, cash/accounts, etc.). If you financed the whole purchase price with nothing or little down and paid for 2 years, it used to be that there would be no equity, but housing prices have increased substantially in some areas, so you really need to know what the house is worth. If you have equity you need to protect, you can file a Chapter 13, which will allow you to do a payment plan to satisfy all or some of your debts, discharging the rest, and allowing you to keep your home. See an experienced bankruptcy lawyer to advise you - don't do this without proper legal advice. We practice bankruptcy law in MD, VA, and DC, so feel free to contact me if you have any questions or wish to consult with counsel.