Bankruptcy Lawyer Vernal Utah

Bankruptcy Attorney Vernal Utah

Personal Bankruptcy Lawyer Near Vernal Utah

Ascent Law LLC (801) 676-5506 Free Consultation

Bankruptcy Attorney Vernal Utah
Bankruptcy Attorney Vernal Utah

What Happens to Home Equity in Bankruptcy?

In bankruptcy, if you own a home, you may wonder what happens to your home equity loan or primary mortgage. Generally, bankruptcy wipes out the mortgage loan but leaves the lien on the home. This can have a dramatic effect on the value of your home. The good news is that there are ways to protect your home equity.

Chapter 7 bankruptcy wipes out the mortgage loan but does not wipe out the lien

A lien is an interest in property that a creditor has that guarantees the debt. It lasts until the debtor pays off the loan in full. In most cases, a lien is voluntary but in some states, it can be involuntary. If a lien is involuntary, the creditor placed it without the borrower’s consent.

A Chapter 7 bankruptcy does not wipe out a lien on home equity but does eliminate a mortgage loan. The amount of debt that can be discharged depends on the state. In some states, you can choose your own exemption list and choose how much of your property is exempt. This is useful if you don’t want to give up your home in foreclosure.

If you have a HELOC, you can use it to pay off some debt. Since it’s not secured against the primary mortgage, your home value will probably increase or stay stable. Therefore, a Chapter 13 filing may help you repay a portion of your HELOC debt, and the rest of your debt will be discharged once the case is resolved.

Chapter 13 bankruptcy can protect your equity in a flexible way

If you owe money on your home but are unable to make the payments, you may qualify for protection with a chapter 13 bankruptcy. This type of bankruptcy allows you to strip your lien on your home. To qualify for this type of protection, the lien must be wholly unsecured, meaning that the proceeds from the sale of your home would not be enough to cover all or part of the lien.

When you file a Chapter 13 bankruptcy, you must dedicate a portion of your disposable income toward paying back your debt, while also paying off your other debts. The repayment plan generally lasts between three and five years. Once the repayment plan has been completed, any unsecured debt that remains will be discharged. This includes child support and student loans.

Exemptions for real estate used as a home in bankruptcy

In bankruptcy, certain properties can be excluded. These properties include those with liens. As long as the property is used as a home, it is exempt. However, if you have a mortgage on it, you can only be exempted up to $5,000. The rest of the property will be dealt with in your bankruptcy case.

You can also keep other property that is essential to your livelihood. This can include your car and tools, a computer, and necessary medical supplies. Similarly, your house, furnishings, appliances, and household goods may also be exempt. Other items that can be exempted include artwork and musical instruments. These items do not have to be valuable in order to be exempted, but they should be valuable enough to be resold.

However, the extent to which you can keep certain types of property in bankruptcy may vary greatly from state to state. The level of exemptions depends on where you live, but federal laws generally allow a lump-sum property exemption.

If you have any questions, you can get a free consultation with Ascent Law LLC:

Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
https://g.page/ascentlaw?share
https://www.ascentlawfirm.com/bankruptcy-lawyer/

When you need a Divorce Lawyer, contact this law firm:

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506
Ascent Law LLC

4.9 stars – based on 67 reviews


Recent Posts

Real Estate Attorney

Probate Lawyer

Estate Planning Attorney

Child Custody Lawyer

Divorce Lawyer

Business Lawyer

Ascent Law LLC St. George Utah Office

Ascent Law LLC Ogden Utah Office

Directions from Orem Utah to Ascent Law LLC West Jordan Utah

Directions from Holladay Utah to Ascent Law LLC West Jordan Utah

Directions from Vivent Arena Salt Lake City Utah to Ascent Law LLC West Jordan Utah

Vernal, Utah

From Wikipedia, the free encyclopedia
 
 
 

Jump to navigationJump to search

Vernal, Utah
East entrance of Vernal (2012)

East entrance of Vernal (2012)
Location within Uintah County and Utah

Location within Uintah County and Utah
Coordinates: 40°27′17″N 109°32′8″WCoordinates40°27′17″N 109°32′8″W
Country United States
State Utah
County Uintah
Settled 1876
Named for Vernal
Government

 
 • Mayor Doug Hammond
as of January 2018[1]
Area

 • Total 4.62 sq mi (11.97 km2)
 • Land 4.62 sq mi (11.97 km2)
 • Water 0.00 sq mi (0.00 km2)
Elevation

 
5,328 ft (1,624 m)
Population

 (2010)
 • Total 9,089
 • Estimate 

(2019)[3]
10,438
 • Density 2,258.33/sq mi (871.95/km2)
Time zone UTC−7 (Mountain (MST))
 • Summer (DST) UTC−6 (MDT)
ZIP codes
84078-84079
Area code 435
FIPS code 49-80090[4]
GNIS feature ID 1433885[5]
Website vernalcity.org

Vernal, the county seat and largest city in Uintah County is in northeastern Utah, approximately 175 miles (280 km) east of Salt Lake City and 20 miles (32 km) west of the Colorado border.[6] As of the 2010 census, the city population was 9,089. The population has since grown to 10,370 as of the 2018 population estimate.[7]

No data matched by id...
No data matched by id...
No data matched by id...
No data matched by id...
No data matched by id...
No data matched by id...
No data matched by id...
No data matched by id...

Comments are closed.