If you are in debt and concerned about whether you can keep your home, bankruptcy may provide a solution. At the law firm of Gross & Patterson, LLC, in Pittsburgh, our attorneys offer a free initial consultation to discuss your debt issues and explain your options.
Pennsylvania Bankruptcy Home Exemptions
Equity in your homestead (up to $21,625 for an individual or $43,250 for a husband and wife filing together who own a home together) can be exempted when you file bankruptcy in Pennsylvania. In other words, you would have up to $43,250 of exemptions to use to save your home. When an asset is exempt, the bankruptcy trustee cannot take it to pay your debts. However, your home is still subject to the mortgage lien, and, if you want to keep your home, you still have to make the payments.
Bankruptcy offers several options for homeowners:
- If you are current on your mortgage payments, and you are otherwise eligible to file under Chapter 7, you can file Chapter 7 bankruptcy and keep your house. By discharging credit card bills and other unsecured debt it will make it easier to keep up with your payments.
- If you have significant arrearages, those arrearages can be part of a Chapter 13 repayment plan, which would allow you to pay off the arrearage over a three- to five-year period without late fees or penalties. If you have a second mortgage on your home, you may be able to strip the lien on the second mortgage. Stripping the lien changes the second mortgage into an unsecured debt. As an unsecured debt, you may only have to pay back a small percentage of what you owe and discharge the remainder.
- If you are facing foreclosure, filing bankruptcy will stop the foreclosure and give you time to consider your options.
If you don't want to keep your home you can surrender the house, and discharge the mortgage debt by filing bankruptcy.
Learn more: Bankruptcy is often the best way out of a mortgage morass.
For More Information About Keeping Your Home in Bankruptcy
To schedule a free initial consultation with a Pittsburgh lawyer who can help you keep your home, call 412-567-4732 or fill out the contact form on this website.
