Will I lose my house if I file bankruptcy?
- December 31, 2019
- Admin
- Comments Off on Will I lose my house if I file bankruptcy?
Contact us today at Winsor Law Group to discuss your options for both personal and business bankruptcy relief.
All real property owned by a debtor belongs to the bankruptcy estate, which means that a trustee could potentially sell a home belonging to a debtor. However, Arizona has a generous exemption for a primary residence. A debtor can exempt $150,000.00 of equity in a home. This means that unless a primary residence has enough value to pay off the mortgages and liens on the property, the costs relating to the sale, and still give the debtor $150,000.00, the trustee will not sell the property.
But there are important limitations. If you sell your house while in an active bankruptcy case, you only have 18 months in which to reinvest exempt sale proceeds in a new home. Lender restrictions may make it impossible to get a new loan before the exemption period expires. It’s important to get advice from experienced bankruptcy attorneys when you are considering bankruptcy and selling your house, so call Winsor Law Group for a free consultation.
Contact us today at Winsor Law Group to discuss your options for both personal and business bankruptcy relief.
Disclaimer: This article is for informational purposes only. If you have questions about filing bankruptcy, please fill out our short questionnaire and Winsor & Reed will set up a consultation to see if bankruptcy is the right option for you. We are a debt relief agency. We help people file for relief under the Bankruptcy Code.
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