Can I keep my home when filing for bankruptcy?

Yes, you can keep your home when filing for bankruptcy in Delaware. Delaware law allows for exemptions from bankruptcy for certain types of property, such as your home. The Delaware Code § 8407 allows for up to $10,000 of property value to be exempt in a residential home. This means that if the value of your home is less than $10,000, then it is fully exempt from bankruptcy proceedings. However, if the equity, or value of the home, is more than $10,000, the equity in excess of the exemption amount will be subject to bankruptcy proceedings. The federal Bankruptcy Code also provides certain protections for homeowners. Those who file for Chapter 7 bankruptcy will have a certain amount of time (usually 6 months) to either catch up on delinquent mortgage payments or to find other means of repayment outside of bankruptcy. If this is not done in the allotted time, the lender can force a foreclosure sale, and the debtor may lose their home. If you file for Chapter 13 bankruptcy, you will be able to keep your home while restructuring your debts under a repayment plan. This repayment plan will allow for a period of 3-5 years in which you can make smaller, more manageable payments to your creditors, including your mortgage lender. During this time, you will continue to make your mortgage payments, and you will still be able to keep your home. No matter your circumstances, be sure to speak to a qualified attorney during the bankruptcy process to make sure you are making the best decisions for your financial future.

Related FAQs

What are the consequences of not filing for bankruptcy?
What is the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy?
What are the requirements for filing for bankruptcy under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?
Will I lose my property if I file for bankruptcy?
What is the meaning of a bankruptcy discharge?
What documents will I need to file for bankruptcy?
What is bankruptcy?
What is an adversary proceeding?
Is bankruptcy a public record?
What is the bankruptcy automatic stay?

Can I keep my home when filing for bankruptcy?

Related FAQs

Related Blog Posts