The amount of your equity is an asset in bankruptcy and a Chapter 7 trustee may be able to sell your house and use the equity to pay your creditors. If you live in a state that has a homestead exemption of $75,000, your equity is protected and the bankruptcy trustee cannot go after your house.

What Cannot be included in a Chapter 7?

Debts Never Discharged in Bankruptcy Alimony and child support. Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years. Debts for willful and malicious injury to another person or property.

Can a company own a property in a foreign country?

It can put off potential buyers. One of the advantages of buying through a company is the potential to legally avoid Capital Gains Tax in that foreign country as the property does not change ownership and still remains in the name of the company. However, not everybody wants to buy in the name of a company.

Can a foreign investor own real estate in the US?

A foreign investor may own U.S. real estate directly in his or her own individual name. This is the most primitive and cost-effective form of ownership, yet provides the least long-term benefits and exposes the owner to liability, tax reporting requirements, estate taxes and Foreign Investment in Real Property Tax Act (“FIRPTA”) withholding tax.

Do you need a fiscal number for a foreign property?

The company will need a fiscal number in that foreign jurisdiction and the company will need to grant a Power of Attorney to somebody to sign on its behalf – even if you are going to sign the title deed yourself. It can put off potential buyers.

What should you know before buying property in a foreign country?

Before buying a house in a foreign country, it is important to be aware of your legal rights and obligations. Always insist on getting written documents, preferably legally translated to your language, of all agreements and signed contracts. Also make sure to get a receipt for any money paid, or any transactions you make.