Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Someone say that I have a lot equity ($150-$170) in the house. In chapter 13, the court will ask to pay back to creditors.
The limit equity can keep for single is 100K and a couple is 150K. Is that correct?
Hello again. Thank you for writing back.In general, a single homeowner may exempt up to $75,000 of the equity in his home. But you may exempt $100,000 if you live with a family member, and $175,000 if you are 65 or older (or physically or mentally disabled). There is no doubling of the exemption for married couples.It is true that the non-exempt equity must be paid to the Trustee during the life of the Chapter 13 Plan. The longest a Plan can last is 5 years. So, assuming you qualify to exempt $75,000 of equity, and your house has $150,000 of equity in it, then you must pay the Trustee $75,000 over 5 years (i.e., $1,250 per month).