If you own a home, it's important to know what will happen to that home if you file for Chapter 7 bankruptcy. Many homeowners contemplating bankruptcy have questions such as:
Whether Chapter 7 bankruptcy makes sense when you own a home depends on your goals -- do you want to save your house, delay foreclosure, or just walk away with less debt?
Learn how much home equity you can protect using the homestead exemption in bankruptcy and other requirements you must meet to keep a home in bankruptcy.
Bankruptcy can take your house if you file for Chapter 7, but many people are able to keep homes in bankruptcy. Find out if you will lose your house if you file bankruptcy and what you must do to keep it in Chapter 7.
If you no longer wish to keep your house, you can surrender it (give it back) in your Chapter 7 bankruptcy. Learn more about what happens when you surrender your house in Chapter 7 and how it can benefit you.
When you file for Chapter 7 bankruptcy and owe money to a homeowner's association (“HOA), you may be able to discharge (wipe out) those dues.
Most Chapter 7 bankruptcy filers have to give up their second or vacation homes if they have a significant amount of equity in them.
Although Chapter 7 bankruptcy gets rid of your personal liability on your mortgage, the lender can still foreclose if you stop paying.
If you file for Chapter 7 bankruptcy, you cannot get rid of a junior mortgage lien, home equity line of credit (HELOC), or a lien associated with a home equity loan.
Learn how much home equity you can protect using the homestead exemption in bankruptcy and other requirements you must meet to keep a home in bankruptcy.
Keeping your new house in a Chapter 7 bankruptcy can depend on the accuracy of a Chapter 7 home appraisal. Learn about methods for valuing your home in bankruptcy and the role of bankruptcy appraisals.
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At Nolo, we prioritize quality and transparency because we know how important reliable legal information is to our readers. Our information is meticulously researched, regularly updated, and written in plain English by our experienced writers and editors. Learn more about our editorial standards.