Law Office of Judith A. Descalso Law Office of Judith A. Descalso

The ability to keep your home in Chapter 7 bankruptcy

Most people work hard in order to save up enough money to make a down payment when they purchase a home. For some, owning a home is a lifelong goal, and accomplishing that goal can lead to a tremendous amount of pride and a sense of fulfillment. But, for most people, such a purchase is also the largest financial transaction they will ever be a part of. And, owning a home isn't cheap. Besides the monthly mortgage payment, a homeowner is also responsible for property taxes and the costs of maintaining the home. In the end, all of the expenses involved in owning a home can be part of the reason why Escondido residents find themselves facing severe financial challenges.

However, some people may hold off on looking into a possible Chapter 7 bankruptcy filing to address their financial issues because they may believe that they will lose their home. The concern is understandable. In some bankruptcy filings home equity comes up, and keeping a home may not be an option. However, for those homeowners in California who do not have non exempt home equity, that is, equity in access of their homestead exemption, a Chapter 7 bankruptcy trustee will not be interested in taking the home. However, this doesn't necessarily mean that it is a smart move to keep the home.

For those Escondido residents who are dead-set on keeping their homes, even in the course of a bankruptcy filing, this goal may be possible. However, these individuals will want to assess both their financial ability and the financial wisdom of keeping the home, especially if the home and all of the expenses involved in owning the home were part of the cause of the financial issues that triggered the bankruptcy filing to begin with.

At our law firm, we attempt to help our clients who need information to make this important decision. For more information, please visit our website.

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