Hi and welcome to JA. I am Ray and will be the expert helping you today.
I am sorry you are having to go through all of this.Pennsylvania homestead law is very limited, allowing only a $300 exemption (applicable to any property, not just real estate) for property owned jointly by a married couple. -
While the Pennsylvania exemption system does not provide for a robust homestead exemption, equity in your home may be protected if you file bankruptcy and use the federal bankruptcy exemption scheme.
The federal bankruptcy homestead exemption amount is $22,975 . The exemption may be used for homes, condos, co-ops, mobile homes, and burial plots. Married couples may double this exemption to $45,950. Whether you may keep your home in a bankruptcy filing will depend on how much equity you have in the property and how much of that is exempt from creditors.
Also, federal law requires that you must live in the property for at least 40 months prior to the bankruptcy (any previous property owned in the state, as long as the proceeds were used to purchase the current property, count toward this requirement).
So here I would strongly consider talking to a bankruptcy lawyer here about filing Chapter 7 and discharging the debt.This would get you a fresh start, otherwise they can take the house here for such a debt.
I appreciate the chance to help you tonight.Please let me know if you have more follow up.Thanks again.
Chapter 7 here..