When you file Chapter 7 Bankruptcy, your home equity is protected under the homestead exemption, which is a law that protects your home. The amount protected in Colorado is $60,000, or $90,000 if you are over 60 or are disabled.
Since values were flat after 2008, and most folks had little or no equity in their homes, there was less focus on this question than there is now with a sharply increasing real estate market in the Denver area. Now some folks are bumping up against this limit, or possibly exceeded it causing a problem with protecting the home in bankruptcy.
However, there are many ways to value a home. Condition, location, neighborhood, comparable sales, and assessed value–all play into this calculation.
This is why, if you own a home, it is more important than ever to consult with an experienced bankruptcy lawyer to review this issue before you file. If you have questions about bankruptcy and home equity contact me today.
On April 7, 2022, Governor Polis signed into law Senate Bill 22-086 which greatly increased…
I have generally stayed away from predictions in this blog, but the current economic situation…
The issue of attorney’s fees is an important and confusing issue for folks facing bankruptcy. …
The recent surge in Covid spurred by the Omicron Variant has hit bankruptcy clients particularly…
There are two parts to answering this question: the time necessary to prepare and file…
People who come to see me are often scared and depressed. Not necessarily clinically depressed…