Filing for bankruptcy can feel overwhelming, especially if you are worried about losing your home. So, do you lose your home if you file for bankruptcy? In most cases, you will not lose your house when filing bankruptcy because federal and state laws provide exemptions that protect your home’s equity, and Chapter 13 allows you to catch up on missed payments over 3-5 years. Home equity is the difference between the home’s market value and the mortgage balance owed.
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Can I keep my house if I file Chapter 7 with equity?
If your home equity is below your state’s or federal exemption limits and you keep current on payments, you can usually keep your house.
Does bankruptcy always mean losing your home?
No, most bankruptcy filers retain their primary residence by using exemptions and proper planning.
How does Chapter 13 protect against foreclosure?
Chapter 13 allows you to catch up on missed mortgage payments over several years while stopping foreclosure proceedings.
What happens to mortgage payments after bankruptcy?
You must continue paying your mortgage to keep your home. Bankruptcy may reduce other debts, freeing up funds for these payments.