If we declare bankruptcy, will we loose our property?
Question Details: My husband is disabled. I am in the process of getting my disability. Our house is fixing to be forclosed on. The only asset we have is 11 acres my husband's mom left him when she died last year.
There are different types of bankruptcy. One type is more of a debt restructuring-- where you spread out the payments to make them easier to pay. You are not usually required to sell everything off with this type of bankruptcy. Another type of bankruptcy is a complete discharge where any property that is not exempt can be sold to pay off any debts. Depending on the value of the 11 acres, you may or may not be required to sell it in this type of bankruptcy. So, to answer your question, it really depends on the type of bankruptcy that you file and the amount of exemptions you claim.
If your house is about to be foreclosed on, the mere filing of the bankruptcy can help keep your head above water until everything else is resolved. Many bankruptcy attorneys now offer free online consultations. I would suggest taking advantage of a couple of these to see which type of bankruptcy (if any) would work to help your situation.