Legal Question in Bankruptcy in Georgia

House under bankruptcy

I am thinking about filing Chapter7, and want to know if I will lose my house. Is there any way to go about this without losing it?

Asked on 6/27/02, 9:31 am

2 Answers from Attorneys

Deric Beaudoin Mabry & McClelland, LLP

Re: House under bankruptcy

The short answer is: no you will not necessarily lose your house if you file for chapter 7 relief from your debts. If you are current on your mortgage payments you may reaffirm the mortgage debt and continue paying for your house as normal. If you are behind in your payments, you may need to file for chapter 13 and schedule payments to "catch up" on the amount you are behind and make the monthly payments through the trustee. If you own your house outright you may exempt all or a significant portion of the equity and if there is equity remaining after the exempted amount, you may have to pay a small "dividend" to the chapter 7 trustee for distribution to your creditors.

If you have any further questions, please feel free to call me at (478)757-8111.

Deric J. Beaudoin

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Answered on 6/27/02, 9:54 am
Christopher Ballar Christopher A. Ballar PC

Re: House under bankruptcy

Weather you lose your house or not, depends upon the amount of equity in the house. If you have a lot of equity the trustee may elect to sell the home and use the equity to pay back your creditors. However, if there is little or no equity in the house you may be able to continue to make payments on the house, provided the equity is less than the exemption amount.

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Answered on 6/27/02, 11:18 am

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