Northeastern Pennsylvania FAQ’s ::
Q – Will I be able to retain my home in bankruptcy?
A – A home can be retained in Chapter 7 as long as the owner(s) do(es) not have too much equity ($23,675 if the home is owned by one person and $47,350 if the home is owned by two people) and the mortgage payments are current.
There are also special protections for homes owned by married couples if only one spouse is filing, in which event there may be unlimited equity in the home. The mortgage may be in arrears on the date of the filing of a Chapter 13 bankruptcy petition, and indeed often is, and there may be more equity in the home than is permissible under Chapter 7. However, mortgage payments must be resumed once the bankruptcy petition is filed and any pre-existing mortgage arrears and/or excess equity must be satisfied through the payment plan.
Contact Vince Rubino, Esq.
Poconos Bankruptcy Lawyer
712 Monroe Street
Stroudsburg, PA 18360