Question: My husband and I are in an extreme amount of debt that has built up over a number of years. Periods of unemployment have not helped. We both have very low paying jobs. (one is min. wage,and neither one of us work 40 hrs.) But our credit card debt is around $28,000. We do however, own our home, debt free. Is there help for us since we own our home? Is it possible for us to go bankrupt while owning a home?
Answer: Thank you for your question.. It is possible to file Chapter 7 bankruptcy and keep your home.. It does however depend on your state you live in and decide to file in. There is such a thing as an homestead exemption that caps the value of your assets in real estate. You will have to proceed with a Means Test which will determine your situation on a daily basis. It may well be that with the debt load you carry you may just want to do a Home Equity loan and pay out your debt that way. We suggest you use our free bankruptcy evaluation; a bankruptcy attorney will contact you, from your state, to help you decide whether or not bankruptcy is the correct option for you.