Can I keep my house?

One of the things that concerns homeowners the most when it comes to filing bankruptcy is whether or not they can keep their home. Your primary home is exempt up to a certain dollar amount. However, this applies to your homestead. Secondary properties may not be exempt.

Nonetheless, your concern may lie with the fact that you have a mortgage on your home and you are wondering if you are going to lose it due to that fact. The fact is that you will not necessarily lose your home. Even if there is a mortgage on it, you may be able to reaffirm that mortgage. If you are in foreclosure, there is still a chance that you can keep your house, which is something your Minnesota bankruptcy lawyer can help you with.

Understanding The Exemptions

The homestead exemption is as follows: A home and the land it is on can be valued up to $390,000. If it is an agricultural property, it is exempt up to $975,000. However, the amount of land that it sits on cannot exceed ½ acre if the home is located in the city or 160 acres if it is outside of the city. Spouses are not allowed to double. Manufactured homes are exempt up to an unlimited value.

Helping You Through Reaffirmation & Other Options

Reaffirming your loan in bankruptcy is one way in which you can keep your home. Whether the loan is current or not, reaffirming the loan and then making the effort to bring the loan current will help you keep your home. If you are in foreclosure, the bank doesn’t want to have to foreclose. If the bank forecloses, then they run the risk of losing lending power and that hurts them financially. You can have your Minneapolis bankruptcy attorney talk to the bank about loan modification so that the terms of the loan can change to the point you become current on the loan. If you have had a good payment history in the past, then the chance of this happening increases. It is up to the lender on what happens.

Another option is to include the mortgage in your Chapter 13 bankruptcy filing. You can include all debt in this and this keeps your home for you as long as everything is paid as it is supposed to be. If something happens that you default on your Chapter 13 repayment, then the home loan goes back to the way it was before it was included in the plan, including any late payments. The way to avoid foreclosure in this case is to catch the loan back up. Loan modification may still be on the table, however, depending on the circumstances.

Contact A Minnesota Bankruptcy Attorney

You have put a lot of time, effort, and love into your home and that is why it is most likely important to you that you keep your home. If you wish to keep your house, you do have options. You may be able to reaffirm the loan or you can include it in a Chapter 13 repayment plan. Whatever you choose, the McKinney Law Office is here to help. Call the Minneapolis office at 612-206-3706 or the St. Paul office at 651-379-4110 for a free consultation.

This law firm is a debt relief agency, and we help people file for bankruptcy relief under the United States Bankruptcy Law.