Expert: Terry Leeders - 4/8/2009

Question
When I file Chapter 7 Bankruptcy will I be able to keep my home? My husband was an owner operator truck driver that lost his truck when it blew up last month. Luckily he was able to find a job quickly driving for another company, but we must file for bankruptcy because of the debt associated with the business. All of the payments are up to date on our house, I just want to be sure that we can keep it.

Answer
You can keep the home if you stay current and you have no unprotected equity in the home. Each state has exemptions to protect some equity, so check with a local bankruptcy attorney to determine that it will be protected.  If there is too much equity, then a chapter 13 repayment plan can protect that equity, and would pay back just enough debt to protect the equity.