The housing crisis resulted in many people filing for Bankruptcy protection. However, the drop in equity allowed people in Chapter 7 Bankruptcies to stay in their homes and get rid of their debt without having to worry about Trustee claims against the property. The economic recovery and rising home prices have created equity. For home owners looking to file Chapter 7 Bankruptcy this can present a problem. If you have more equity in your home than you can protect, you may have to pay some money to the Creditors or file a Chapter 13 Bankruptcy. Each persons situation is different, so consult an attorney if you are a home owner with equity and are considering a Chapter 7 Bankruptcy.
