When I meet with clients who own their home, protecting their loved ones and their family home are the number one concerns. As far as protecting your home in bankruptcy goes, Minnesota is one of the best states in the country as far as protecting your equity. Currently, you can have up to $450,000.00 worth of home equity and not lose any of it in filing for bankruptcy relief.
For most people, their homes will not be worth near this much, let alone their equity in the home. The equity represents how much money you would make if you home was sold and the mortgage(s) are paid off. However, since $450,000.00 worth of equity is protected, it does beg the question of how homes are valued in bankruptcy?
Do they use the tax value? Zillow Zestimate? Is it necessary to get an appraisal or Comparative Market Analysis (CMA) for your property to determine its value?
The value of your home can be a very elusive thing to discover, however the answer is simple, it is worth what someone is willing to pay you for it.
For purposes of filing a bankruptcy, you will want to consult with a lawyer to determine if your home’s specific value will have an effect on your cases. Because your home is the most important asset you own, your home’s value will often determine how other property will be exempt or protected in bankruptcy. In certain situations you may want to get an appraisal done before filing your case.
The main point is, your home equity is exempt in bankruptcy, SO you should consider if it makes sense to file for relief before taking out Home Equity Lines of Credit or otherwise borrowing against your home equity. It is something you do not have to give up when you file chapter 7 or chapter 13 bankruptcy.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Especially if you own your home, you will want an experience lawyer to represent you in bankruptcy proceedings. When you are ready, if you would like a free consultation about your options, please give me a call at 1-800-551-3292, or go on to www.kainscott.com for more information. You will be happy you did.
