| 13. My home is fully paid for. It is worth
about $95,000.00. May I keep it? |
|
Not in a Chapter 7 case because the maximum
exemption for a husband & wife is $12,000. You will need to consider
a Chapter 13 case. |
|
| 14. My home is worth $65,000 and I owe
$63,000 on it. May I keep it? |
|
Yes. Continue making your monthly payments
on time and use up $2,000 of your exemptions. If you are behind in
your payments, try to come current as soon as possible. |
|
| 15. I have a home that I am three months
behind on. I would like to keep my home. It is worth $60,000 and I
owe $58,000. May I keep my home? |
|
Chapter 7 will stop your creditor from
taking your home right away. If you can come current, do so as soon
as possible. If not, you have three ways to handle the arrearage.
You may refinance, reaffirm, or reorganize under Chapter 13. To "refinance" you
would go back to your original creditor or any other lender, and borrow
the outstanding balance. To "reaffirm," you would negotiate
a deal with your current lender to pay the past due amount. |
|
| 16. The foreclosure advertisement is now
in the newspaper. Will my bankruptcy stop the sale? |
|
Only if your bankruptcy petition is actually
filed with the court in Baltimore City before the sale AND notice
of the bankruptcy is given to the foreclosure attorney BEFORE the
auctioneer's hammer comes down at the time of the auction sale. |
|
| 17. My home is owned by my mother. She lets me rent it. Will she lose it? |
|
As long as she really owns the house and
there was no transfer in the last three years, she will keep it. |
|
| 18. I have little or no equity in my home.
I cannot afford the monthly payments. The utility bills are too much
for my budget. I am told that it will only sell for about $60,000
at auction in today's market, but I owe nearly $100,000. What should
I do? Will I be responsible for the $40,000 loss from an auction? |
|
Stop making your mortgage payments and
live rent free for the next 4 to 6 months, perhaps even as much as
a year. Eventually the bank will auction it off. You are NOT responsible
for the anticipated $40,000 deficiency. That debt will be wiped out
in your bankruptcy. Let the lender know if the insurance is in effect
or is about to lapse. |
|
| 19. I would like to keep my house. How
does the trustee decide if I have too much equity? |
|
The Trustee will consider your initial
purchase price, year purchased, but primarily the current full tax
assessment. He may have it appraised, but that is not likely. Sometimes
he will have his auctioneer ride by to look at it, though not often. |
|
| 20. If my house is going back to the bank
for sale, how much advance notice will I have? |
|
Generally, a minimum of eight weeks, so
you can find a place to move to. Also, if your family or friends want
to purchase the property for you, that is OK. |
