Many people suffer under a mountain of debt troubles for years — even though they can easily qualify for Chapter 7 bankruptcy — because they’re worried that filing for Chapter 7 will result in the loss of their home. However, in numerous situations, Washington state residents will not have to liquidate their residence, and they can keep the equity they’ve saved in their home, even after the successful completion of their Chapter 7 bankruptcy.
The attorney who represents you in your bankruptcy process, in fact, will make it his or her mission to safeguard as much of your personal property as possible — including your home. Under certain circumstances, Washington homeowners can retain ownership of their home equity, which is the difference between what the home is worth and what they still owe on the property.
Imagine that you have finished paying off the mortgage on your condominium property — or you have nearly finished paying off the mortgage — and you currently have $100,000 worth of home equity. In other words, if you sell the home outright you’ll receive $100,000 after paying off any extraneous debts relating to the home. In this case, you can keep the equity in your home and you probably will not have to liquidate the home as a part of the Chapter 7 liquidation process.
Washington state bankruptcy exemptions allow homeowners to exempt up to $125,000 worth of home and land equity. This permits the homeowner to dissolve his or her debt covered by the bankruptcy while keeping the property.
Are you considering Chapter 7 bankruptcy proceedings? You may want to learn more about the process — and whether you’re eligible to file for bankruptcy — by visiting our website.