If I own 50% of my home with my mother owning the other half, will we lose it if I file for Chapter 7?
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If I own 50% of my home with my mother owning the other half, will we lose it if I file for Chapter 7?
Asked on September 2, 2013 under Bankruptcy Law, Indiana
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
You could face that problem if the equity in your home exceeds the Homestead Exemption in Bankruptcy for the State of Indiana. The dollar amount I believe is $17,800 per person that is protected. If the equity is more than that the Trustee - and ultimately the Court - will decide if the asset should be kept or if the asset must be sold to pay back the debt. Because your Mother owns half the Trustee must go to the Bankruptcy Court and ask for permission to force the sale. I would speak with an attorney about the possibility of a Chapter 13 which is a reorganization. It reduces the debt and allows you a payment plan to repay but you can keep the house. Good luck.
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