BankruptcyChapter 7 Bankruptcy

Can I Keep My Home if I File for Chapter 7 Bankruptcy?

You may keep your home if certain conditions are met.

  1. You can’t be behind on your house payments.
  2. You must also be able to afford your house payment each month.
  3. You must also not have an exceedingly high amount of equity built into your home. 

As long as those conditions are met, you can keep your home if you choose to do so. One of our attorneys will speak with you in detail about these issues and help you decide the proper course of action.

When we file for chapter 7 bankruptcy, we communicate to the bank whether or not you intend to keep the house. If you do want to keep it, the mortgage company will mail to us a reaffirmation agreement, which the bank asks for you to sign so that the mortgage conditions remain the same. 

Although chapter 7 allows you to discharge your unsecured debt, it lets you reaffirm secured debt on a home or a car, so that you an keep that property.

If your situation does not meet one of the three conditions above, do not despair! The bankruptcy that is right for you may be a chapter 13, which also may allow you to retain your house even if you don’t meet all of the above conditions.

Call us to set up an appointment so that we may explain these points further!


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