What happens to your home when you file for Chapter 13 bankruptcy? For the most part, you don't give up any property in Chapter 13 bankruptcy. This means that if you are current on your mortgage, you keep your home. If you are behind on your mortgage or facing foreclosure, Chapter 13 (unlike Chapter 7) allows you to make up mortgage arrears through your Chapter 13 plan.
Chapter 13 bankruptcy provides other tools to reduce your home mortgage debt. You can strip off junior liens (second or third mortgages or home equity lines of credito) in certain situations. This can reduce your home loan debt significantly.
Below you'll find articles on your home in Chapter 13 bankrutpcy. To learn how Chapter 13 can help with foreclosure, visit Nolo's Bankruptcy & Foreclosure section.