From the desk of McCarthy Law Manhattan Beach attorney, Rosanna Savone:
This is a common question asked by debtors contemplating whether they should file for bankruptcy or move forward with debt settlement instead. Some believe that your primary residence is always exempt when you file for Chapter 7. However, as you will learn in the article, that is not true. It really depends on how much equity you have in your home, whether you qualify for a homestead exemption, and if your equity isn’t above the exemption amount.
For those that can afford to maintain their mortgage payments and are only having difficulty keeping up with their unsecured debts, like credit cards or medical debt, debt settlement through a reputable law firm is often a better solution over bankruptcy. Whereas in a bankruptcy proceeding, the government and its laws dictate how much you can afford to pay back by various means (e.g. by selling your home and distributing the proceeds to your creditors). Debt settlement is a private solution where factors like how much equity you have in your home rarely come into play. So for those of you that want to make sure you have a roof over your head, check out debt settlement before you file for bankruptcy.