Bankruptcy

Filing for bankruptcy may impact your ability to keep your house, depending on the type of bankruptcy you file and the equity you have in your home.

If you file for Chapter 7 bankruptcy, the trustee may sell your non-exempt assets to repay your creditors. However, many states offer exemptions that protect a certain amount of equity in your home, which may allow you to keep your home. If your equity exceeds the exemption amount, you may have to sell your home or pay the difference to the trustee.

If you file for Chapter 13 bankruptcy, you will be able to keep your property, including your home, as long as you make payments under a repayment plan that includes your mortgage payments.

It's important to note that bankruptcy laws vary by state and the specific circumstances of your case. Consulting with a bankruptcy attorney can help you understand how bankruptcy would impact your specific situation, including whether you may need to sell your house.