Equity in house

[Nicki8875]

OK, here is my situation. We have equity in our house. We owe about $54,000 and it was appraised at $100.00 BUT it is a double wide/ mobile home on a perm foundation so most banks wont even touch a loan for those and the ones that do only loan up to 60-65% of the appraised value.

What kind of trouble would this cause us as far as the BK? Because technically our equity is higher then our unsecured debt but there is no way our house would sell for $100,000 and there is no way we could get a loan to consolidate that. Wondering now if it is even worth going to see an atty since our DMI is negative it would be hard to repay 100% to unsecured and we want to keep the house.

[ansky0007]

The worst case scenario would be that the trustee would put your house up for sale and see what offers they get on it. If you get interest at $100k or close to it they will sell it to pay back your creditors.

[AtWitsEnd]

Ok, you have 46,000 equity in your home. (Be sure to get an appraisal to see if it really is worth $100,000) We actually needed the appraisal to file. In our case we had $62,000 equity in our home but the exemptions in PA, where we filed, allowed us $40,000. Therefore the $22,000 difference was what "needed" to be paid into our chapter 13 plan as the creditors in a 13 have to be paid what they would get if you sold the assets (meaning things that aren't exempt) in a chapter 7. Check your states exemptions, its possible you can exempt all or a good part of your equity. Hope this helps.