Whether you lose your home in bankruptcy depends on a number of factors, including:

• The type of bankruptcy you file:
• Chapter 7: This is known as liquidation bankruptcy.¹ You may be able to keep your home if you're current on your mortgage payments and have enough equity in your home that falls within your state's exemption limits.² However, if you have significant equity or are behind on your mortgage, you could lose your home.³
• Chapter 13: This is known as reorganization bankruptcy.⁴ You'll typically be able to keep your home, even if you're behind on payments, as long as you can make your regular mortgage payments and catch up on any arrears through a court-approved repayment plan.⁵
• The amount of equity you have in your home: Equity is the difference between your home's market value and the amount you owe on your mortgage.⁶ If you have a lot of equity, the bankruptcy trustee may sell your home to pay off your creditors.⁷ However, most states have homestead exemptions that protect a certain amount of equity.⁸
• Whether you're current on your mortgage payments: If you're behind on your mortgage payments, the lender may be able to foreclose on your home, even if you file for bankruptcy.⁹
• Your state's laws: Bankruptcy laws vary from state to state, so it's important to consult with an attorney to understand the laws in your state.¹⁰

In general, here are some things to keep in mind:

• Filing for bankruptcy can stop foreclosure proceedings temporarily.¹¹ This gives you time to work out a repayment plan with your lender or to explore other options.
• If you're behind on your mortgage payments, it's important to talk to your lender as soon as possible. They may be willing to work with you to¹² avoid foreclosure.
• You should consult with an experienced bankruptcy attorney to discuss your options. The Law Office of Thomas Denny can help you understand the bankruptcy process and determine whether filing for bankruptcy is the right decision for you. Call (716) 800-1234 for a FREE CONSULTATION.