able to file for bankruptcy or not

[rpivending]

What is the name of your state?new york..i am really confused about the homestead exemption. what does the 10,000.00 (single) 20,000.00 joint mean. i have a house i bought for 117,000 if it appraises for 179,000.00 does that mean i cannot qualify for bankruptcy. can someone give me an example using real numbers i can't figure this out for the life of me....thanks

 

[Ladynred]

If you are filing by yourself, then the homestead exemption is 10K. If you are filing jointly with a spouse, you can double that exemption to 20K.

If you have a house that has a current market value of 140K, and you OWE 100K, that leaves 40K in equity. However, you would also SUBTRACT from that 40K selling fees and any necessary repairs needed.

If you still have MORE than 10K in equity which is covered by the homestead exemption, then the house his vulnerable to seizure by the Trustee.

In that case, you could PAY the Trustee the difference to keep your house, or you could file Ch 13 instead of Ch 7.