I have a home that has $120,000 mortgage, but I have a Judgment that I have not come to a settlement agreement about and I am considering filing a Chapter 7 and not a Chapter 13.
The answer to your question depends upon the current fair market value of your home. You should contact a local realtor to obtain same. You have an exemption of $21,400.00. If you are single and own the property just in your name, with a $120,000.00 mortgage balance, your property could be worth around $150,000.00 and if you filed Chapter 7, it would not be sold by the Chapter 7 Trustee.
HOWEVER, it is rather important that you do not try to file a bankruptcy on your own. Contact an experience bankruptcy attorney in the county in which you live for advice and counsel.
Please be advised that the advice to you herein does NOT establish an attorney client relationship and that our firm does NOT represent you in any Bankruptcy matter.
If your equity in your home, considering only the mortgage payoff balance, is equal to or less than the homestead exemption amount available to you in Georgia, the judgment lien can be avoided as to the homestead. If that can be done and you have the income to pay your monthly mortgage payments, then you can keep your home, discharge your unsecured debt and get the judgment lien off of the home.
There are other factors that could come in to play, such as your income and expenses, which could result in you not qualifying for a chapter 7.
There are always a lot of moving parts and the only way to make sure you make the right decision is to make an appointment with an experienced bankruptcy attorney that handles both chapter 7 and chapter 13 cases, even if you are sure that you need a chapter 7. Most bankruptcy attorneys will provide you with a free initial consultation. You can start your search for an attorney by using the Avvo "Find a Lawyer" link at the top of this page.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
If your mortgage payment is up to date, you can keep your house, as long as you keep up the payments and have no more than $21,500 equity, or $43,000 in equity for married couples. “Equity” means how much ownership interest you have in your house. To find out how much equity you have, take the present market value of your house and subtract the amount you still owe on the mortgage (usually called “Balance” on your mortgage statements). For example, if the purchase price of your house was $250,000, and the current market value is $180,000, and the amount still owed on your mortgage is $175,000, your equity would be $5,000 ($180,000 less $175,000). For more information go to www.TheWilliamsLawOffice.com
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