How to Keep My House in Chapter 7 Bankruptcy in Connecticut
- 1). Catch up with your mortgage payments if you have fallen behind. Both federal and Connecticut laws require you to stay current with your mortgage to claim a homestead exemption.
- 2). Get your home appraised to determine the fair market value of the home. You will use the fair market value in calculating your equity.
- 3). Calculate the equity in your home by subtracting your home's value from the amount of money you owe on the mortgage. For example, if the house is worth $50,000 and you owe a mortgage of $30,000 your equity is $20,000.
- 4). File a federal homestead exemption if you have equity of $20,200 or less in your home. If you have equity of between $20,200 and $75,000, you can file a state exemption in Connecticut even though you do not qualify for a federal exemption. If you are married and are filing for bankruptcy jointly with your spouse, you may file a federal exemption if you have equity of $40,400 or less and a state exemption for up to $150,000 worth of equity. File your exemption on Schedule C when you file your Chapter 7 bankruptcy. Schedule C requires you to list whether you are claiming a federal or state exemption, the amount of the exemption you are claiming and the full value of your property.
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