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Negative Equity in Home


Kate
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No. Negative equity in real property does not off-set equity in other areas. The only thing that comes about from your example is that the bankruptcy trustee will abandon* the house to you if you are filing chapter 7.

*That means the trustee won't be interrested in selling the house to pay your debts. As long as you keep up the mortgage payments you can keep the house.

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