My question involves bankruptcy in the state of: California
My family home is about to go into default. I am only working part-time and my spouse in unemployed. I have about $20,000 in debt and about 65,000- 85,000 in equity in home.
If I apply for chapter 7 bankruptcy my understanding is that the property will be sold to take care of the debts I owe, Will I be able to come out with the rest of the equity to make a fresh start?
I am still trying to get a co-signer to help me with refinancing as I got into a very bad interest only loan and I am paying $2,000 a month for the mortgage. With a good credit co-signer I could get my payments to about $900 a month, which would be totally doable. The loan is coming due in March (balloon payment) and I have bad credit due to closing our business 2 years ago. (most of the debt was business related - we were sole proprietors)
I hate to lose the home (been in the family over 50 years) and my 2 year old grandson lives here with me. I am trying to figure out best way to go.