If you are wondering if you can keep your home after filing a Chapter 7 bankruptcy in Littleton, you’ve come to the right place. Whether you will be able to keep your home or house after filing a Chapter 7 bankruptcy depends on the value of your home and how much you will be able to exempt under bankruptcy law.
Keep Your Home in Chapter 7 Bankruptcy in Aurora | Home Equity Amounts Matter
When you file a Chapter 7 bankruptcy in Aurora, you will list all of your assets. Some assets will be listed as exempt, while others will be listed as nonexempt. In a Chapter 7 bankruptcy, the bankruptcy trustee assigned to your case may sell your nonexempt property to pay your creditors. Fortunately, it may be possible to exempt equity in your home so you can protect it. Under C.R.S. 38-41-201, there is a Homestead Exemption which protects a certain amount of equity in your home. Below are the amounts of home equity you will be able to exempt in your home if you file bankruptcy in Colorado:
Every homestead in the state of Colorado shall be exempt from execution and attachment arising from any debt, contract, or civil obligation not exceeding in actual cash value in excess of any liens or encumbrances on the homesteaded property in existence at the time of any levy of execution thereon:(a) The sum of seventy-five thousand dollars if the homestead is occupied as a home by an owner thereof or an owner’s family; or(b) The sum of one hundred five thousand dollars if the homestead is occupied as a home by an elderly or disabled owner, an elderly or disabled spouse of an owner, or an elderly or disabled dependent of an owner.
For example, let’s say you are buying a home which has a market value of $230,000. If you owe the lender $190,000, that means you have $40,000 in equity, which is below the homestead exemption amount. In other words, your equity will be protected and you will be able to keep your home. Even if all of your home equity is not protected by the Homestead Exemption, there may still be options available to you, so you should always meet with a reputable bankruptcy lawyer to learn more.
Parker Chapter 7 Bankruptcy Attorney Barry Arrington: Call Today
If you are considering filing a Chapter 7 bankruptcy and have more questions about whether you can keep your home, consult Parker Christian bankruptcy lawyer Barry Arrington right away. Barry has the knowledge and skills necessary to help you regain your financial freedom.
If you are considering filing a Chapter 7 bankruptcy in Colorado and want to keep your home, contact experienced bankruptcy attorney Barry Arrington for a free consultation at 303-205-7870. He will give you a good perspective on the benefits of filing, and the best path towards financial freedom.