Most everyone is concerned about what they are going to lose if they decide to go bankrupt. They are concerned about their personal assets, and those that are not familiar with the bankruptcy laws often make the wrong assumptions. The first step that any individual that is in a serious financial predicament should do is have a consultation with experienced Dayton bankruptcy lawyers.
As soon as you file for bankruptcy a bankruptcy estate is created. Everything that you own for the most part becomes part of the estate as these are your assets. The Court now has the power over this estate and determines what will be done with your property.
There are many assets that are exempt from bankruptcy and each bankruptcy case is individual. In both bankruptcies a trustee is assigned to oversee your case. This is the individual that determines what will happen to your assets which may include your home.
When looking at your home the trustee will determine if there has been any equity built up in it. In the Chapter 7 bankruptcy it is unlikely that the trustee would force the sale of your home if you have not built up such equity. In any event this type of debt is a secured debt and will not be wiped out in your Chapter 7 bankruptcy, even if you do have equity built up in your home.
The homestead exemption may come into play and you will not lose your home. It is important that your home be exempt, and this is one of the reasons why you need to rely on professionals to help determine if it can fall into this category.
Also keep in mind that when we are talking about your home here this must be your principal residence. It is important that the equity in your home be classed as exempt to prevent the sale of it. Each state has their own laws when it comes to exemptions as well as there are federal exemptions. You will need to know what these laws are as they pertain to your particular bankruptcy within the state that you are filing for this type of debt relief.