Facing debt while worrying about your home can feel overwhelming, especially in California where home equity and property rules are unique. Will you lose your house if you file Chapter 7 in California? In many cases, you can keep your home if you file Chapter 7 in California, provided your equity is within the state’s homestead exemption limits and you can continue making mortgage payments. If you are current on your mortgage payments, you are likely to keep your home in Chapter 7 bankruptcy.
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Frequently Asked Questions
Will I lose my house if I file Chapter 7 in California?
Not if your equity is within the California homestead exemption and you remain current on your mortgage.
What if my home equity is above the homestead exemption?
The trustee may sell your home, pay you the exempt amount, and use the rest to pay creditors.
Can Chapter 7 stop foreclosure in California?
It may temporarily delay foreclosure, but if you are behind on payments, it does not permanently stop foreclosure.
Can I keep my home if I am behind on payments?
Chapter 7 is not ideal for catching up; consider Chapter 13 bankruptcy instead.
Will liens remain after Chapter 7?
Some liens, like tax liens, may remain; consult your attorney for lien planning before filing.
Should I hire a bankruptcy attorney to protect my home?
Yes, an attorney can help you apply exemptions effectively and protect your home while eliminating debt.