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  1. #1
    Join Date
    Apr 2018
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    Question Home Equity and Chapter 11 Bankruptcy

    My question involves bankruptcy in the state of: MARYLAND

    Hi,

    My mom filed Chapter 7 and the trustee is now having her house appraised to see if they can sell it to pay off her debts. She's afraid that she will end up losing the home. She doesn't have facts (they just appraised the house yesterday), but I'm guessing that the equity is more than enough to cover the debts. If the bankruptcy has just been filed, can she do anything to save her house?

    Here are my questions:
    1. If they sell the house, how long can she live there until she has to leave?

    2. Once the house is sold, will she get the $23K in MD Homestead exemption? She does live there, is current on her mortgage payments and is the single home owner.

    3. Her debt is small-- around $28K - $35K-- and my guess is the equity could be around $90-$100K. She has terrible credit so obviously she couldn't access that equity to prevent bankruptcy.
    After she gets the $23K from MD Homestead exemption and the creditors are paid, it could about $22-$42K left from the sale, what happens to the rest of that money?

    3. Is there ANY WAY to stop this from happening? Can she convert it to Chapter 11,13? Can she do anything legally to keep her home?

    My mom is super uneducated about this process and did this without an attorney. She's in her mid 60's and I am scared for her so anything you can tell me would help or point me in the right direction.

    Thanks!

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