1-855-514-9358Question: There is no equity in our house. We have two mortgages on the house and the total of those mortgages equals about what the house is worth or maybe more than what the house is worth. So if we were to sell for the total amount owing on the house, wiping out both mortgages, what affect would that have if we were to sell the house first and then declare bankruptcy?
Answer: If there is no equity in your house, then selling it prior to bankruptcy is not a problem. In fact, it’s probably a wise move, because if the house sells for less than you expect and there’s a shortfall, that shortfall could then be included in your bankruptcy.
Be sure to keep all documents relating to the sale. It may also be wise to have the house appraised before you sell it, so that you can prove there was no equity.