Bankruptcy loss of house

Letter to “Ask Leon”

Hi, if we were to go bankrupt as we have no equity in our home would that mean we could keep our home as we always pay our mortgage but can not afford our monthly credit payments after essential bills , we have seeked advice but want more. We have 3 young children also.

Leon Says…

Generally speaking, if there is no equity, a person should be able to keep the home provided they continue to pay on time and comply with the mortgage. However, the rules are tricky so please go to a local bankruptcy attorney expert. Be mindful that real estate valuation is an art, not a science. Opinions on value might vary. I have seen instances where various people filed with the absolute certainty that their home had no equity, only to find out that the trustee believed it really did, and successfully sold it for far more than the owner believed it was worth.