Will I lose my house filing Chapter 7 Bankruptcy in Minneapolis, MN?
We have many people who reach out to LifeBack Law Firm concerned about these type of questions. And they are legitimate fears of course. But what we tell people is there really is two issues to dissect when it comes to this question.
The first issue is the equity in the home and who does it belong to? If I file Chapter 7 Bankruptcy and go to sell my home, who does the check at closing go to? Do I get to keep the check or does it go to my creditors? When you file Chapter 7 Bankruptcy, you must list all of your assets on the bankruptcy schedules. The equity in your Minneapolis home is an asset and must be listed on the schedules.
When you list the equity in your Minneapolis home as an asset you can also apply an exemption to your equity in the home protecting your equity from your creditors. In English, the vast majority of people who file Chapter 7 Bankruptcy in Minneapolis, MN get to keep the equity in their home. So when you go to close on your home after filing Chapter 7 Bankruptcy, you get to keep the check.
The second issue is your relationship with the mortgage company after receiving a Chapter 7 discharge. While you are not liable on the loan anymore (and here comes the key), the mortgage company’s lien against the house survives the bankruptcy and they will enforce their lien rights. In English, if you want to keep your home, continue making payments or your mortgage company will foreclose.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, or when you are ready, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.
