Home Equity and Chapter 13

[cunfuzed]

Has anyone out there had experience or success with a Chapter 13 where there was equity in the home you were trying to keep. In other words, my attorney is telling me that my home value needs to appraise much less than my secured home mortgage or they will make me sell it... is this true?

[holding on]

Has anyone out there had experience or success with a Chapter 13 where there was equity in the home you were trying to keep. In other words, my attorney is telling me that my home value needs to appraise much less than my secured home mortgage or they will make me sell it... is this true?

my home was appraised at more than the secured mortgage and attorney never brought up that it might have to be sold in my 13. Maybe some other factors such as creditors must get as much in a 7 as they would a 13 mean that's making the home value an issue.

[zeezee]

I just recently had an appraisal come in wayyy over what I was expecting and it left me with over 70k in equity. My attorny did something called a "liquidation analysis" (what they would actually get if they made me sell my house) and after all of the fees, etc. it comes down to $6,000. in equity! I was sooo happy because I thought I was going to have to pay the $70k.

[AtWitsEnd]

We too are protecting unexempt equity in our home. Our original appraisal came in at 180,000 less the state exemption, less the mortgage/heloc loan balances, $22,000 was left unexempt. $22,000 is what our base to pay back is. In a 13 you must pay back in your plan the amount that the creditors would get if you liquidated in a chapter 7. So, no, you don't have to liquidate your house but you must pay into your plan the amount that is unexempt after exemptions and loan balances are subtracted. Good luck.