Can I Keep My Home in Chapt 7??



Heres the deal;

Left my husband, filed for divorce, purchased a fixer-upper home using a
construction to perm loan. House had an as-completed appraisal at $200k. I
overspent on it, spent $$ on the wrong things, I really screwed this up
trying to be my own contractor. Maxed out all of my credit cards.

Can't redo the siding, can't replace the roof, can't do any of the outside
work because I am out of money. House is worth maybe $150k as is. I owe
$150k on the mortgage, no equity.

My minimum payments on everything equals what I make a month. $0 extra. I
have two jobs, just can't do it.

Reason I mentioned leaving my husband is because we lived in a house that
was in his name only. Divorce is on hold (may be reconciling). And I have
used $80,000 of a joint home-equity line we have.

Is it common (heck, is it even possible?) to go chapter 7, re-affirm the
home (no equity) and NOT include the home equity line that is joint? All
other bills that are burying me are in my name only, not my spouse. Forgot
to mention, the home I purchased to fix up & move into is only in my name,
as is the mortgage for it.

Any advice appreciated, just don't want to lose the house I put so much work
into, and don't want to drag my may-be ex down with me if we can maybe work
it out.




Brett Weiss

Generally speaking, if there is no equity in the house, you can keep it.

I have written a Bankruptcy FAQ which should answer many of your questions
about what is involved--it may be found at

I strongly recommend speaking with a local bankruptcy attorney. Most offer
free initial consultations and he or she should be able to review your
specific situation and let you know what you can and can't do. If you're in
Maryland, DC or Virginia, please let me know--we may be able to help.

Take care.


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The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.

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