Bankruptcy

[Ima saver]

I know of a couple who has just filed for chapter 7 bankruptcy. Are they allowed to keep their primary home or will they lose it?

[mom-from-missouri]

I've seen it go both ways. It may be dependent on the judges decision, I'm not sure.

[maat55]

I know of a couple who has just filed for chapter 7 bankruptcy. Are they allowed to keep their primary home or will they lose it?

Some states have homestead exemption. In OKla. you can file for it and not loose your home. Most states that have HE only do so to a certain amount. If you Google homestead exemtion, it will give explanations.

[tripods68]

Some states have homestead exemption. In OKla. you can file for it and not loose your home. Most states that have HE only do so to a certain amount. If you Google homestead exemtion, it will give explanations.

It's the same way for California. But too many people forget to homestead their home.

[maat55]

It's the same way for California. But too many people forget to homestead their home.

I put it as a top priority everytime I buy a new house.

[MYOM]

You might be able to keep the home but creditors will want to be paid when the home is sold. They can take everything inside the house too. Bankruptcy is Financial Failure on a grand scale.

No corporation or individual in America has ever filed bankruptcy owing nothing to anyone. Debt is a very serious form of financial cancer.

Dan Clemons

[maat55]

You might be able to keep the home but creditors will want to be paid when the home is sold. They can take everything inside the house too. Bankruptcy is Financial Failure on a grand scale.

No corporation or individual in America has ever filed bankruptcy owing nothing to anyone. Debt is a very serious form of financial cancer.

Dan Clemons

I couldn't agree more, Many believe there is good debt, but I would rather have no debt at all. My mortgage is debt I tolerate. I'm not sure what to think about my credit card, I pay it in full and get about 75.00 dollars toward my mortgage, per month. I can live with that.

[MYOM]

Hi Maat55;

I admire you greatly for your dislike of debt. You are going to be a very wealthy man because of your core financial values. The only good debt is mortgage debt and educational debt. None of us can buy a home so a mortgage is a must but there is no law that says you have to make payments for 30 years either. Educational debt is also good debt because it can produce a larger income for you. I would pay that off ASAP too.

I retired at 62 a fairly wealthy man. I have no doubt you will do the same.

Dan Clemons

[maat55]

Hi Maat55;

I admire you greatly for your dislike of debt. You are going to be a very wealthy man because of your core financial values. The only good debt is mortgage debt and educational debt. None of us can buy a home so a mortgage is a must but there is no law that says you have to make payments for 30 years either. Educational debt is also good debt because it can produce a larger income for you. I would pay that off ASAP too.

I retired at 62 a fairly wealthy man. I have no doubt you will do the same.

Dan Clemons

Thanks Dan, I hope I prove you right.

[rizzmo]

OP when a person files chapter 7 bankruptcy, they have the option to re-affirm any and all debt that they have prior to the bankruptcy. For example if the sign a re-affirmation of the mortgage debt prior to bankruptcy, they will just continue to pay on the PITI every month as usual. I believe it is the lenders choice on wether they will allow you to re-affirm the debt. For example if a person had an ARM and has no equity in the home and after the ARM reset does not meet the banks lending requirements, the bank might decide to not allow the debt to be re-affirmed. That being said it is almost always in the banks best interest to allow you to re-affirm a debt, since it removes 99% percent of there risk of default on principal (can only file bankruptcy once every seven years). Hope this info helps.

[Ima saver]

Thank you rizzmo. I know that they have a mortgage on their house plus 3 more mortgages on spec houses that are for sale. They may lose the spec houses, but I hope they can continue to pay on their home. I am sure they have a good bit of equity.

[glock35ipsc]

None of us can buy a home so a mortgage is a must

Define "none of us" in your false statement please.

[hasselfree]

they will be able to keep their home. They could lose some of the equity if they have any.

[KatieNK]

I couldn't agree more, Many believe there is good debt, but I would rather have no debt at all. My mortgage is debt I tolerate. I'm not sure what to think about my credit card, I pay it in full and get about 75.00 dollars toward my mortgage, per month. I can live with that.

What kind of CC do you have that it gives you $ toward your mortgage?

[Ima saver]

Thanks. I have been so opposed to debt that I managed to pay off my house by age 32. Since then, I have had 3 other houses, but without a mortgage.