Rising house prices are not good for everyone. If you are a married couple under 65 years of age, you can protect 46,000 of equity in your home in a Chapter 7 Bankruptcy. Three of four years ago, almost no one had that much equity in their home. Fast forward three years and suddenly everyone’s home is worth 40 or 50 thousand dollars more. Great if you are selling your home, not so great if you are facing a Bankruptcy.
There are ways to get debt relief and protect your home. Consider a low payment Chapter 13 Bankruptcy, if the market changes and house prices drop, you can always convert your case to a Chapter 7 at a later date.
