For most folks filing bankruptcy, their greatest asset is almost always real estate. That is certainly true here in the Gloucester County area. One of the biggest questions I get from people with whom I consult is, will I lose my house if I file bankruptcy? The question I often ask is, it depends: is it your house or your residence?
Huh? What difference does that make? It's my house! Well, I am here to tell you that it can make a big difference, and that difference comes in with what exemption you can use. A residence is where you live, and is a key word in the federal home equity exemption used here in New Jersey. The bankruptcy code provides an exemption for the equity "in real . . . or personal property that the debtor or a dependent of the debtor uses as a residence." Learn more here.