Can I Keep My Home in a Bankruptcy Case?
In Colorado, a person or couple can exempt $75,000.00 of equity from the bankruptcy estate in a Chapter 7 case. (for persons older than 60, the exemption is 105,000) What this means is that, in general, you can keep the house you live in when the case is filed, so long as you do not have more than $75,000.00 of equity in that home.
Secured creditors such as your mortgage holder(s) do have a right to regular payments in a chapter 7 case. If you are seriously behind on your mortgage payments, it may still be possible to save your home by filing a chapter 13 case. In a chapter 13 case mortgage arrears can be paid through the plan.
It is always best to seek legal advice well before the forclosure process has started. The earlier you take control of your finances by contacting a bankruptcy attorney, the easier it will be for an attorney to help repair the situation. In many cases, the forclosure on your home can be stopped by a timely bankruptcy filing.
Preparation is the key to success in any type of legal matter. We have the bankruptcy experience necessary to prepare your case quickly and get it done right.