Error: Contact form not found.

Chapter 7 Bankruptcy

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Can I File for Bankruptcy and Keep My House?

Can I File for Bankruptcy and Keep My House If I’m Behind on Payments?

Can I file for bankruptcy and keep my house? This is one of the most common concerns homeowners face when considering bankruptcy. Fortunately, many people can keep their homes depending on the type of bankruptcy they file and their current financial situation.

If you’re behind on mortgage payments or worried about foreclosure, filing for bankruptcy may offer protection through an automatic stay and specific exemptions. Understanding how this works is key to protecting your home while addressing your debts.

Chapter 7 vs. Chapter 13: How They Affect Your Home

The answer to “Can I file for bankruptcy and keep my house?” often depends on which bankruptcy chapter you choose:

Chapter 7 Bankruptcy

  • Protects equity up to state exemption limits.
  • You must continue making payments to keep your home.
  • Risk of losing the home if you have significant non-exempt equity.

Chapter 13 Bankruptcy

  • Ideal for homeowners with past-due payments.
  • Allows you to repay arrears over 3–5 years through a court-approved plan.
  • You keep your home if you stick to the plan and stay current on new payments.

Both options can work, but Chapter 13 offers more protection for those at risk of foreclosure.

Homestead Exemptions and Equity Protection

Another key factor in whether you can file for bankruptcy and keep your house is how much equity you have and whether it’s covered by your state’s homestead exemption.

What Is a Homestead Exemption?

A homestead exemption protects a certain amount of your home’s equity from creditors during bankruptcy. If your equity falls under the exemption limit, the trustee cannot force a sale.

  • In Chapter 7, if your equity is exempt, you typically keep your home.
  • In Chapter 13, the exemption helps determine how much you must repay to unsecured creditors.

It’s essential to calculate your current equity and compare it to your state’s limit before filing.

Other Key Factors That Influence Home Retention

Filing for bankruptcy and keeping your house also depends on:

  • Current on Mortgage Payments: If you’re current, you’re less likely to face foreclosure.
  • Second Mortgages or HELOCs: These debts may be partially discharged or restructured.
  • Income Stability: Courts must see that you can afford to continue making payments.
  • Intent to Surrender: If you no longer want the home, bankruptcy can also help you walk away without liability.

Even if you’re facing challenges, you still may qualify to keep your home with the right strategy.

Know Your Options to Move Forward Confidently

Knowing the answer to “Can I file for bankruptcy and keep my house?” gives you the power to make a smart, informed decision. Bankruptcy doesn’t always mean giving up your home. In fact, many use it as a tool to protect their most important asset.

Get Help Protecting Your Home Through Bankruptcy

Wondering can I file for bankruptcy and keep my house based on your unique situation? You don’t have to navigate this alone. A qualified bankruptcy professional can review your mortgage, debt, and income to help you understand what’s possible.

Contact us today to explore your options and get clarity on your rights. Acting now could save your home and give you the financial reset you need.

Frequently Asked Questions (FAQs)

Yes, Chapter 13 bankruptcy can stop foreclosure and help you repay missed payments over time.

You must still pay your mortgage unless you plan to surrender the house. Bankruptcy may discharge other debts to make your payments more manageable.

This depends on your state’s homestead exemption. Many states protect tens of thousands in home equity, allowing you to keep your house.

Yes, if your equity is fully exempt and you remain current on payments, you can likely keep your home.

Chapter 13 lets you catch up on arrears and avoid foreclosure while keeping your home.

Key Takeaways

  • You may be able to keep your home when filing for bankruptcy, especially under Chapter 13.
  • Homestead exemptions help protect equity from liquidation.
  • Staying current on mortgage payments strengthens your case to keep the home.
  • Chapter 13 offers a structured way to repay missed payments and stop foreclosure.
  • Consulting a bankruptcy attorney ensures you understand your options and rights.

Start Your Free Bankruptcy Evaluation

Step 1 of 6

What is your total debt?

Step 2 of 6

What is your total monthly income?

Step 3 of 6

Do You Own Real Estate?

Step 4 of 6

What is the estimated value of your assets?

Step 5 of 6

Is an attorney or advocate already helping you with your bankruptcy?

Step 6 of 6
By clicking "Submit" you agree that you will be contacted by a legal representative, participating attorney, or affiliate via phone (including autodialers, pre-recorded calls), email or SMS (Msg & Data rates may apply) about your interest in finding an attorney. Consent is not a condition of the services.
CHAPTER 7 BANKRUPTCY
CHAPTER 13 BANKRUPTCY
CHAPTER 11 BANKRUPTCY
FAQ