Chapter 7 while owning home

[Anonymous]

I had pretty much written off choosing bankruptcy out of pride but I'm coming to realize it may be a smarter option. 

I was self employed for the last five years and it just wasn't working so I hired on with a contractor and now this COVID stuff happened and work isn't available. We were just keeping our heads above water but not making any forward progress and now I'm falling behind.

 Where my situation is unique is that I own my property/house. With no available or meaningful work available (can't even collect unemployment due to self employment) i don't think I could qualify for Ch 13 and am worried about losing everything with Ch 7. 
 The property was purchased for $40k and i have put improvements on it but it's still accessed at around $40k. My states home exemption is $100k. Since I own this property out right how much chance do i stand of keeping it? I intend to meet with a couple lawyers to see what they say but wanted to get ahead first. Also in terms of assets what happens to your stuff like tools, books etc?  Also my home is off grid and the only power to it is a solar system is that considered part of the house or could I have to liquidate my power source?

 Thanks in advance. 

[sccredit]

If the exemption is $100k you'd be fine. Paid off or not the calculation is the same. Equity less than the exeption cannot be touched. I understand the pride part, I waited too many months to file.

[Anonymous]

@Anonymous I totally get the pride part. My dad was always the guy that did the right thing, lived within his means, etc... then 2009 hit! My parents divorced and he lost half his pension and his financial life was in a free-fall. He left retirement, went back to work to try to make ends meet, fell behind on most everything and it started to mess with his health. We tried to help as much as possible but he wanted to do it on his own. 

Finally after years of begging him to do so, he filed Chapter 7 in 2015. Immediately, his phone stopped ringing. He was mortified believing that creditors would show up at his meeting and almost stopped the process. His creditor meeting was less than 10 minutes, no one showed up and then he just waited for the discharge. Fast-forward to today, he has Fico 8's and 9's in the mid 700's, he has just over $150K in CL's and most importantly he is healthy. He didn't have to give-up any personal belongings in the BK and once he wrapped around actually moving forward, he could actually start to see a future.

I respectfully say, consider letting go of the pride and recognize the toll that the debt is taking in all areas. If you decide to file, this forum is miraculous in regards to assisting with your rebuild. Sometimes you just can't swim against the current any longer. There is a light at the end of the tunnel. You and yours are in my thoughts. 

P.S. Welcome to the myFico community BTW!!

[Anonymous]

Thank you. For the advice. 

[ballysdad]

Solid story and solid advise! Happy for your father.

[despritfreya]

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@Anonymous wrote:

. . . I own my property/house. . .  and am worried about losing everything with Ch 7.  The property was purchased for $40k and i have put improvements on it but it's still accessed at around $40k. My states home exemption is $100k. Since I own this property out right how much chance do i stand of keeping it? I intend to meet with a couple lawyers. . .

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1.  It is great that you plan to meet with a couple of attnys.  Even better if you hire one.

2.  The taxed assessed value of you home is not relevant.  What is relevant is its market value - what you can sell it for.

3.  If its market value is at or below the allowed exemption you will be fine and everything else will fall into place.

Des.

[Shooting-For-800]

You should qualify for PPP.

Check federal unemployment out...