Legal Question in Bankruptcy in California

On a Chapter 7 where they say we could be made to sell our house: My husband is going to file BK and is the only one on the loan he got for a business venture that failed and now he can't afford to pay it back. However I 'm not filing and yet my name is on the house also. We have a homestead protecting 175,000 and we owe 180,000 and our home is only worth 300,000 tops. Is it best to go Chapter 7 and still keep our house, or file chapter 13 and still have to repay for 5 years still with some savings but a still an amount not affordable for us?

Asked on 6/30/16, 11:10 am

2 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

If you are concerned about your house being in a Chapter 7, find an experienced bankruptcy attorney and get an appraisal done on the house. If a Chapter 7 trustee thinks that he or she can sell the house for a price generate money for creditors after paying off the mortgage, pay you the homestead exemption and the costs of sale (about 8%), then the trustee might opt to sell the house. If you are afraid of losing the house in a Chapter 7, a Chapter 13 plan is a possibility.

An experienced attorney can look at your situation and explain in more detail about whether your home would be at risk in a Chapter 7 or if you could come up with an affordable Chapter 13 plan payment. There really isn't enough information provided yet to tell you specifically what you should do.

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Answered on 7/01/16, 5:04 am
Charles Andersen Charles Andersen, Atty

Given the limits of the information you provide it sounds like a chapter 7 case. However I suspect that there may be more to it that that. How about arrears on the mortgage, property taxes etc. Do you have other liens on the house?

It is a case for an experienced bankruptcy attorney and you should not attempt to handle this matter yourself.

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Answered on 7/01/16, 7:42 am

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