Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the rank-math domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php on line 6114 Warning: Cannot modify header information - headers already sent by (output started at /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php:6114) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/rest-api/class-wp-rest-server.php on line 1893 Warning: Cannot modify header information - headers already sent by (output started at /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php:6114) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/rest-api/class-wp-rest-server.php on line 1893 Warning: Cannot modify header information - headers already sent by (output started at /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php:6114) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/rest-api/class-wp-rest-server.php on line 1893 Warning: Cannot modify header information - headers already sent by (output started at /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php:6114) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/rest-api/class-wp-rest-server.php on line 1893 Warning: Cannot modify header information - headers already sent by (output started at /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php:6114) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/rest-api/class-wp-rest-server.php on line 1893 Warning: Cannot modify header information - headers already sent by (output started at /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php:6114) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/rest-api/class-wp-rest-server.php on line 1893 Warning: Cannot modify header information - headers already sent by (output started at /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php:6114) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/rest-api/class-wp-rest-server.php on line 1893 Warning: Cannot modify header information - headers already sent by (output started at /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/functions.php:6114) in /hermes/bosnacweb08/bosnacweb08ak/b2306/ipg.mhlawofficescom/mhlawoffices.com/wordpress/wp-includes/rest-api/class-wp-rest-server.php on line 1893 {"id":3456,"date":"2023-06-28T01:51:36","date_gmt":"2023-06-28T01:51:36","guid":{"rendered":"https:\/\/mhlawoffices.com\/?p=3456"},"modified":"2024-10-16T01:55:36","modified_gmt":"2024-10-16T01:55:36","slug":"what-happens-to-my-house-when-i-file-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/mhlawoffices.com\/what-happens-to-my-house-when-i-file-for-bankruptcy\/","title":{"rendered":"What Happens to My House When I File for Bankruptcy?"},"content":{"rendered":"

Filing for bankruptcy is a big deal and can affect many areas of your financial life including your assets. For homeowners, one of the biggest questions when considering bankruptcy is what will happen to my house. In this article we will go over what happens in Nebraska when you file for bankruptcy and how it affects your house.<\/p>\n

Nebraska Bankruptcy<\/strong><\/h2>\n

Bankruptcy is a legal process that gives individuals and businesses a fresh start by eliminating or repaying their debts under the court\u2019s supervision. In Nebraska, bankruptcy cases are filed in the United States Bankruptcy Court for the District of Nebraska. There are different types of bankruptcy filings but for individuals the two most common are Chapter 7 and Chapter 13 bankruptcy.<\/p>\n

Chapter 7 Bankruptcy<\/strong><\/h2>\n

Chapter 7 bankruptcy<\/a>, also known as liquidation bankruptcy, involves selling non-exempt assets to pay creditors. But Nebraska has a homestead exemption that can protect your home equity up to $120,000 per claimant. Understanding how this works is key in determining what happens to your house in bankruptcy.<\/p>\n

How the Homestead Exemption Works<\/strong><\/h2>\n

The homestead exemption is a legal provision that protects your home from being sold to pay off debts in a bankruptcy case. In Nebraska, this exemption allows you to protect up to $120,000 per claimant of equity in your home. Equity is calculated by subtracting the remaining mortgage balance from the current market value of the home. For example, if your home is worth $200,000 and you owe $150,000 on your mortgage, your equity is $50,000. Since this is less than the Nebraska homestead exemption, your home would be protected in a Chapter 7 bankruptcy.<\/p>\n

But if your home equity is above the exemption amount, the bankruptcy trustee may sell your property to pay off your debts. Keep in mind the trustee will only sell the property if there is enough equity after accounting for exemptions, liens and selling costs. So if your home has little to no equity or the equity is within the exemption, it\u2019s less likely to be sold.<\/p>\n\t\t

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Get A Free Bankruptcy Evaluation Today<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Call (402) 965-0775 <\/a> or (308) 221-8222<\/a> or click here<\/span> to submit a consultation request<\/a> form now.<\/span><\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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What if My Home Equity is Above the Exemption?<\/strong><\/h2>\n

If your equity is above the $120,000 exemption, the trustee can sell your home to pay off creditors. But this isn\u2019t as simple as it sounds. First the trustee must make sure the sale will result in a net benefit to creditors after paying off the mortgage, selling costs and distributing the exemption to you.<\/p>\n

For example, if your home is worth $250,000 and you owe $100,000 on the mortgage, your equity is $150,000. Subtracting the $120,000 homestead exemption leaves $30,000 of non-exempt equity. The trustee would have to consider selling costs and other liens before deciding if selling your home is worth it.<\/p>\n

Other Things That Can Protect Your Home<\/strong><\/h2>\n

Nebraska\u2019s homestead exemption isn\u2019t the only thing that can protect your house in a Chapter 7 bankruptcy. Other considerations:<\/p>\n