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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2890
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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If you file for Bankrupcy in Pa, and you own your home, can

Customer Question

If you file for Bankrupcy in Pa, and you own your home, can your home be taken away?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Hi and thanks for your question.

The answer is -it depends.

In Penn. there is no homestead exemption to protect equity.
If you are married, and the home is owned by tenancy by the entirety -it is then exempt (protected) without limit as to debts of one spouse [In re McCormick, 18 B.R. 911 (W D. Pa. 1982)].

If the property is mortgaged out,, with no equity, then there is no issue (or usually even if less than 5% equity, since that amount is what it would cost to liquidate).

Otherwise, if there is equity, then you can file a chapter 13 to pay back enough of the consumer debt to protect the equity.

Talk to a local bankruptcy attorney to review your situation and home equity, and they can give you a free consultation about your case.