Many Minnesota homeowners are understandably concerned about what will happen to their homes if they file for Chapter 7 bankruptcy relief. They don’t want to move and uproot their children. At the same time, they want the relief and fresh start that bankruptcy can provide.
The bankruptcy code addresses this concern specifically and provides what is known as the homestead exemption for Chapter 7 bankruptcy petitioners. According to the homestead exemption, a certain amount of the equity in a home is exempt from creditors in Chapter 7 bankruptcy.
Of course, many people who are filing for Chapter 7 in Minnesota do not have a lot of equity in their homes and instead have a mortgage that may be difficult to pay. So long as arrangements are made to keep paying the mortgage on time, which may be possible if your income is freed from other debts, then you may be allowed to stay in your home.
If keeping your home is a priority to you, then it is important to speak with an experienced Minnesota bankruptcy lawyer who is committed to helping you keep your home if possible. You can reach a Minnesota bankruptcy attorney at 952.388.2942 or 800.619.8991 to schedule a free consultation.
To find out more information about what you need to do to complete a Chapter 7 bankruptcy in Minnesota, please contact an experienced Minneapolis Chapter 7 bankruptcy lawyer at (952) 388-2942 or (800) 619-8991 and please read our FREE book: What You Need to Know About Filing Bankruptcy in Minnesota.