Faced with Bankruptcy, many people in Los Angeles wonder about whether they will be forced to lose their homes. The answer is: It depends! If you are filing a Chapter 7, which most consumers will do, you have to look at the equity in your home. As a single person in good health, for example you can exempt up to 75K. This means if your equity is 75K or less the Bankruptcy Courts will allow you to keep all of this amount!
A few years ago, this seemed to be a trifle sum. However, nowadays many either have minimal or negative equity, so the one bright spot of this dismal economy is that you may get to stay in your home after all. Whether you want to walk away or not from the home is another matter. Also, if you have alot of equity and don't want to risk having the Trustee in Bankruptcy Court to sell your home for the excess equity above your exemption, you can file a Chapter 13 Bankruptcy provided your income is high enough to afford a payment plan. The good news is that a payment plan can often allow you to only pay back 10% of the original amount owed on many of your debts, and after 3 to 5 years, the rest of the debts are wiped out.
Bankruptcy is a weighty decision and should not be taken lightly. At www.frazeelaron.com we can walk you through a complete analysis in order to find the best way to stop the bleeding and provide you a solution that won't break the bank, yet provides you real legal advice instead of form fillers who can't step into court to fight for your dignity and economic survival.
