Your Home in Chapter 7 Bankruptcy

Your Home in Chapter 7 Bankruptcy

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?

The Homestead Exemption in Bankruptcy

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. All bankruptcy filers can keep a house if the homestead exemption protects all home equity. The Chapter 7 bankruptcy trustee will sell the home if the homestead exemption doesn't fully protect the home's equity. Chapter 13 filers can keep a home that isn't fully covered by the homestead exemption if they can afford to pay creditors the uncovered amount through the bankruptcy plan.

Will I Lose My Home If I File for Chapter 7 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.

What Happens If I Surrender My House in Chapter 7 Bankruptcy?

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.

Can I Discharge HOA Dues in Chapter 7 Bankruptcy?

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.

Can I Keep a Second Home in Chapter 7 Bankruptcy?

Most Chapter 7 bankruptcy filers have to give up their second or vacation homes if they have a significant amount of equity in them.

Will Filing for Chapter 7 Get Rid of My Mortgage?

Although Chapter 7 bankruptcy gets rid of your personal liability on your mortgage, the lender can still foreclose if you stop paying.

Can I Get Rid of Second Mortgages and Liens in Chapter 7 Bankruptcy?

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.

Can I Modify My Mortgage in a Chapter 7 Bankruptcy?

Find out about applying for a modification of your mortgage while in Chapter 7 bankruptcy.

The Homestead Exemption in Bankruptcy

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. All bankruptcy filers can keep a house if the homestead exemption protects all home equity. The Chapter 7 bankruptcy trustee will sell the home if the homestead exemption doesn't fully protect the home's equity. Chapter 13 filers can keep a home that isn't fully covered by the homestead exemption if they can afford to pay creditors the uncovered amount through the bankruptcy plan.

How to Value Your 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.