Can I Keep My Los Angeles Home in a Chapter 7 Bankruptcy Discharge?
As you might expect, the ability to stay in a home after filing a Chapter 7 bankruptcy varies based on many factors for homeowners in Los Angeles and throughout California. For some people, Chapter 13 might be a better option because it allows you to restructure the terms of your mortgage. However, if you own your home outright, and you take the California homestead exemption, you can potentially keep your home in a Chapter 7 bankruptcy.
The homestead exemption under California law is complex. However, the basic provisions permit homeowners to exempt $75,000 (or significantly more) of their home values from Chapter 7 liquidation as long as the property is their primary residence. Particularly if you own the home outright, this exemption can help keep you in your home after your Chapter 7 bankruptcy discharge.
If the value of your residential property exceeds the exemption amount, you can potentially lose part of the property, such as stand-alone buildings or excess land beyond any applicable zoning requirements. In other cases, you might be forced to sell property to pay off some obligations while retaining the cash value of the exemption, which can provide a vital fresh start after bankruptcy. Experienced Los Angeles Chapter 7 bankruptcy lawyers conduct a detailed analysis of your financial circumstances and help you understand the most appropriate options so you can make an educated decision.
The Law Offices of Michael Jay Berger has assisted with more than a thousand Chapter 7 bankruptcy filings for clients. Nearly all of them retained all of their assets after the discharge. The firm is dedicated to relieving client stress and finding the solutions they need to move forward toward successful financial futures.