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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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If I file for Chapter 7 bankruptcy will I lose my home I had

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If I file for Chapter 7 bankruptcy will I lose my home? I had to take an early medical retirement and my pension is roughly 1/3rd of what my income used to be. Consequently I've fallen behind in my mortgage and credit card payments.

Hi JACustomer,

1) If you stop paying the credit cards and other unsecured debts, which can be discharged in a Bankruptcy, will you be able to pay the mortgage?

2) How much equity does your home have? (Equity is the market value minus the balance on the mortgage.)

Customer: replied 5 years ago.

1) I'm not sure; my mortgage is around $2400/month, my monthly pension is $1994.00/month, I'm making monthly payments ($250.00) to the IRS for the 2009 tax year and I owe approximately $4000 in credit card debt.


2)The equity is approximately $36000 (434,000 - 398,000). I have an upside-down mortgage, so I wasn't able to refinance before I had to retire.

Given the information you provided, filing a Bankruptcy will not result in the lose of your home, because it does not have enough equity.

In other words, filing a Bankruptcy will not affect your ability to keep the home.

I think this is what you wanted to know. If not, please let me know.
Thank you!

Edited by cfortunato on 1/3/2011 at 6:58 PM EST
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