The question
My spouse and I owe $53,000 in unsecured debt and we are going to file Chapter 7 bankruptcy. We don’t want to file chapter 13 we can’t afford the repayment plan. I’m the owner of our house and I still owe $18,000 to my mortgage company the listed value is $80,000 that puts the equity over the NC homestead exemption of $35,000 if the trustee sells our home how will the money be distributed? Will I be paid the exemption of $35,000? After the creditors and mortgage company are paid or will the mortgage balance be taken out of the $35,000 leaving me with only $17,000? I’m confused on that part. Thanks for any information.