[k9keepr]

My husband and I reside in Michigan and he lost his job over a year ago. He does have a retirement from the USN and for now we are getting his unemployment but that won't last much longer. We owe approx 25,000 in credit card debt that we can't pay now. We own a home that we owe 65,000 on and it is valued at approx 100,000. If we file chapter 7 can we keep our home? The only thing we own outright is a 10 year old truck and my husband does have approx 32,000 in a 401k. We are both in our late 50's.

[George_1950]

Welcome to AMHD. It appears to me that your state allows a $3,500 homestead exemption, so that if your home is jointly titled, you may claim an exemption of $7,000. So, $65k + $7k = $72k, therefore 'at risk' is $28k to claims of unsecured creditors. Some of that $28k is reduced by realtor fees, as well as fix-up costs if necessary to sell the property. I would work on reducing the appraised value of the home, which may be possible if you are in a depressed area. Start clipping newspaper articles if they will support your position.

[Fr_Chuck]

yes, at today's values, the home may not be worth nearly as much as you think it is, so you need to get a valid appraisal of the home to see exactly where the value is.

Also talk to a local attorney and see if they allow the use of the tax value ( often much less than current values) in court.

Also there is a option of a chapter 13 which is a repayment, but it allows you to repay according to income and ability