Protecting Your Home in Bankruptcy
- February 26, 2013
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If you are a homeowner and thinking about filing for bankruptcy, there are many factors which you must take into consideration in order to protect your home. When you file for bankruptcy, you must inform the bankruptcy Trustee of all the assets you own, including your home. Assets which are not exempt will be used by the Trustee to pay off your creditors. Under New Jersey law, there is no homestead exemption; only a non-debtor spouse’s survivorship interest in the home is spared. However, under Federal law an individual is allowed to exempt $21,625, of equity in their home, $43,250 for a married couple filing jointly. If you have more equity in your home than what is allowed to be exempt, a Trustee could force the sale of your home to pay your creditors. If that is the case, you should look to remove second and third mortgages on your home or even look into trying to file a Chapter 13 bankruptcy. If you are considering filing for bankruptcy you will be addressing many issues concerning your home, and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding how to protect your home during a bankruptcy, foreclosure, consumer debt or other bankruptcy law matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.