My name is Ron Drescher. I?m an attorney practicing
bankruptcy and commercial litigation in Maryland, Virginia, Pennsylvania and Delaware; and today,
I want to answer the question, can I keep my home if I file for bankruptcy. The short
answer to that question is maybe. It depends on it you have equity in your home and if
you?re behind in your mortgage. If there is no equity in your home, which means that the
amount that you owe on the mortgage is more than the house is worth and you are current
on that mortgage, you?re gonna be able to keep your house in bankruptcy as long as you
can keep current on the payments. Now, if there is equity on the home, you may have
more of a problem trying to keep it in bankruptcy because the trustee is going to think about
selling the home so that he can take the proceeds and use them to pay creditors, so the trustee
is going to decide if the amount that you owe on the house plus the exemptions you?re
allowed to keep are less than the value of the house. If they are less, then the trustee
is really going to think about selling your house and you may lose your home. In which
case, you don?t want to go into a Chapterÿ7 bankruptcy, you want to consider a different
approach to your financial problems. Maybe you don?t have a lot of equity in the house
but you?re behind on your mortgage. Then, you can use a Chapterÿ13 case to catch up
on the arrears on the amount of money that you owe the lender. You can typically do that
over a 60 month period. That?s one of the big advantages in a Chapterÿ13 case and sometimes
why it?s better than a loan modification where you are uncertain about what the lender is
going to do for a year or more. My name is Ron Drescher. I?m an attorney practicing bankruptcy
and commercial litigation. If you have a question about whether or not you can save your home
in bankruptcy, please pick up the phone and call me. I would love to hear from you.