Wednesday, 14 March 2012

Will house survive bankruptcy action?

Q. I am a recent widow who is having a hard time raising achild, and I am heavily in debt. I may have to file bankruptcy inorder to protect my job as I am afraid my employer will not tolerateit if, through attachment of my wages, he becomes involved with mydebt problems.

If I have to file bankruptcy, my big worry is my house. My latehusband and I jointly owned a modest home, which we bought a fewyears ago with a very little down payment. It has, however,increased in value so that it is now worth about $19,000 or $20,000more than the present mortgage balance.

A friend who has gone through bankruptcy tells me that I am onlyentitled to a homestead exemption of …

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