Will you lose your home if you file bankruptcy?
Lots of people considering filing for bankruptcy fear that they may lose their home.
First of all, there are several types of bankruptcies (for individuals – Chapter 7, chapter
11 and chapter 13). The answer to the above question may be different depending on which
bankruptcy you file. If you file Chapter 7, you are current on your mortgage and there is
no equity in your home (or equity up to certain exempt limit, which is different in each
state, e.g., $150,000.00 in Arizona), you should be able to keep your home. If you are
behind on your mortgage payments, Chapter 13 bankruptcy may be better option for you.
Chapter 13 gives you a tool to cure the arrearage over time and thus, allows you to save and
keep your home. Chapter 11 is similar to Chapter 13, but it is more expensive type of
bankruptcy, mainly for people whose debts exceed the Chapter 13 debt limits. In summary,
the filing of the bankruptcy does not necessary mean losing your home. To the contrary,
certain types of bankruptcy may give you another tool to protect and keep your home. Since
your home is important to you and your family, our recommendation is to consult with an
experienced bankruptcy attorney how to protect your home. Contact us to schedule a free