If you kept your house throughout the bankruptcy process, you are free to keep your home after the bankruptcy – as long as you continue to pay the mortgage. It may be that after you are free of all the rest of your debt you will be able to afford the mortgage payments easily. If so, you’ll be able to keep your house.
After filing for Chapter 7, your property will go into a bankruptcy estate held by the Chapter 7 bankruptcy trustee appointed to your case. However, you don’t lose everything because you can remove (exempt) property reasonably necessary to maintain a home and employment.
What happens to my house if I file bankruptcy?
If you’ve already fallen behind on your mortgage payments when you file for Chapter 7 bankruptcy, you’re likely to lose your house. Filing for bankruptcy lets you stay in your home another month or two, but ultimately, the bank will foreclose on the property.
Can a chapter 13 bankruptcy Help you Keep Your House?
The negotiation helps reduce the chance you will lose your house during bankruptcy. If you are facing foreclosure or you are behind on your house payments, a Chapter 13 bankruptcy can help you keep your home. In your Chapter 13 repayment plan, you pay your past due mortgage payments a little each month.
Can you sell your house if you file Chapter 7 bankruptcy?
Fortunately, even a Chapter 7 bankruptcy filing might not cost you your home, and the fact that you owe on it could actually help. If you declare Chapter 7 bankruptcy and owe too much money on your home, it won’t be sold to pay creditors.
Can a mortgage be eliminated in a Chapter 7 bankruptcy?
Eliminating your mortgage in Chapter 7 bankruptcy won’t terminate the lender’s lien or its future right to foreclose your property. However, Chapter 7 bankruptcy also allows filers to discharge debts but continue making payments on them.
