When you have extreme equity, your house may be marketed by the Chapter 7 trustee within the the case. But not, Georgia legislation (on O.C.G.A. 44-13-100) provides exemptions that enable you to lawfully manage specific guarantee worthy of and get away from sales of your property from the Trustee. It exemption is known as this new homestead exclusion:

Having a situation filed by one unmarried debtor, brand new homestead exception are $21,five hundred. It indicates you could potentially up to $21,five hundred guarantee plus the Trustee wouldn't promote your residence.

Getting a mutual instance filed by a couple debtors who happen to be partnered or an incident filed from the a single debtor who is hitched, new different is $43,000. This means when you can have to $43,000 equity of your property and the Trustee wouldn't promote your house.

Be mindful: For folks who file a part eight instance in addition to security value in your home is more than the quantity you are enjoy to help you excused as mentioned significantly more than, your residence could well be marketed of the Chapter 7 trustee in the your instance. Thus, a chapter 7 instance is named a beneficial liquidation personal bankruptcy, because your family and other possessions you own which have security really worth that's more than you are permitted to exempt could possibly get getting offered or liquidated by the a bankruptcy proceeding Trustee.

Your house into the a part thirteen Bankruptcy

Instead of a part 7 circumstances, a part 13 circumstances isnt an excellent liquidation circumstances. That is, there's not good Trustee from inside the a part thirteen situation whom try appointed to market or liquidate your residence. As an alternative, a part thirteen case is an installment case of bankruptcy. A part 13 instance means a section thirteen repayment intend to getting filed on courtroom. Within the payment package, you intend an effective way to spend what you owe. The master plan get blend your entire costs into a single commission. Usually, the plan payment is sold with automobile funds, furniture accounts, loan company finance, taxes, past-due mortgage payments, and you may unsecured debts particularly bank card membership, personal loans, and you may medical expense. Of a lot chapter 13 circumstances was recorded to let a borrower in order to save their home of getting lost because of foreclosure of the home loan company. In part 13 package, you are able to take up so you're able to five years to pay back secured claims, plus prior-owed mortgage repayments. When you are located in a section thirteen plan, you should make monthly payments on section thirteen Trustee. Chapter thirteen Trustee spends the cash to expend the money you owe according towards part thirteen plan. In package, youre paying the car fund, chairs profile, otherwise catching up toward past due mortgage payments. When you are in section 13 situation, you are legitimately protected from financial institutions trying collect currency otherwise contact you concerning the currency you owe. When you have a mortgage loan and you also need certainly to continue your home, you might continue to pay the typical monthly mortgage repayment, and the section thirteen plan percentage. The latest part thirteen situation is created in order that in case the chapter 13 bundle is carried out, funds getting vehicles and you can furniture, including, is actually reduced. Regarding past-due mortgage repayments, conclusion of your own package means most of the past due repayments is actually swept up. Following the plan got ended, you will still result in the regular mortgage payment.