Legal Question in Bankruptcy in Georgia

House after Chapter 7 bankruptcy

We are looking at Chpt. 7 and want to try to keep our house. Would we be able to sell it after the bankruptcy is finished? Are there time constraints on this? My husband is older. What happens if we keep the house and then find ourselves unable to pay after the bankruptcy due to job loss or illness? Can we voluntarily give it back to the bank after having reaffirmed the debt during Chpt. 7? Finally, there is currently an equity line on the home that is maxed out. To keep the home do we have to also reaffirm that debt or if we have it seek to have it discharged will that equity count toward our exemption amount? Thank you so much for helping us.

Asked on 7/01/04, 2:09 pm

2 Answers from Attorneys

Christopher Ballar Christopher A. Ballar PC

Re: House after Chapter 7 bankruptcy

If you filed a Chapter 7 and later received a discharge, the house could be sold. If you want to keep the house all mortgages must be reaffirmed. You should get representation to insure that you are not in danger of losing your house. Additionally, if you can not pay the mortgage once you are discharged the property will most likely be foreclosed upon. You can not, in most cases, just give it back without penalty.

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Answered on 7/01/04, 2:47 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: House after Chapter 7 bankruptcy

First of all, you can only generally keep your house in a Chapter 7 if the payments are current and there is minimal equity (under $20,000 if a husband and wife own it together). There would be no restriction on selling it after a bankruptcy discharge if you reaffirmed. If you reaffirm, once 60 days go by, you are bound by the reaffirmation and owe the debt like there had never been a bankruptcy.

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Answered on 7/01/04, 5:12 pm

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