Legal Question in Bankruptcy in North Carolina

I am separated and my wife lives in our home with our son and pays the mortage can I file Chapter and keep the house


Asked on 7/23/09, 11:58 am

1 Answer from Attorneys

Thomas Zimmerman Zimmerman Law Office

Generally yes. In a Chapter 7, a trustee is appointed to take over your non exempt property. Each state provides for exemptions. If the state has not "opted out" or if there has been a move within the last 26 months, the Federal Exemptions may apply. The exemption only is applicable to the equity in the real estate. Thus if you fall within the Federal Exemption, which is $18,450, that interest cannot be reached by the trustee and is exempt. The exemption only applies to the interest you own, which likely is 1/2 if the real estate is held jointly. Thus, in this artificial example, the equity in a jointly held property can be as high as $36,900 and either or both owners could file bankruptcy and retain the property. In a Chapter 13, a greater amount can be retained if the payout in the payments equals or exceeds the non exempt value. Of course, the debtor or someone has to make payments to the creditor and pay taxes, etc., all that is required out side of bankruptcy. You should consult a lawyer in the state of the property and give him/her all the details to allow confirmation of the exemption applicable.

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Answered on 7/23/09, 12:28 pm


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