If you don’t want, or cannot afford, to keep your home, you can surrender it in Chapter 7 bankruptcy. If you don’t want to keep your house when you file for Chapter 7 bankruptcy, you can surrender it (give it back) to the lender.

Can I file bankruptcy and include my house?

Some assets — including cash, your home and your car— are exempt from the bankruptcy, based on how much they are worth. Exemption amounts vary from state to state, but generally, any assets with equity lower than the exemption amount cannot be seized.

Can You Keep your home if you file Chapter 7 bankruptcy?

Whether Chapter 7 bankruptcy makes sense when you own a home depends on your goals—do you want to save your house, delay foreclosure, or just walk away with less debt? Most Chapter 7 bankruptcy filers can keep a home if they’re current on their mortgage payments and they don’t have much equity.

Can you sell your house in Chapter 7 bankruptcy in California?

California also allows bankruptcy filers to exempt from $75,000 up to $175,000 of homestead value in their homes. Your home’s mortgage debt plus your Chapter 7 bankruptcy’s homestead exemption may not make it worth selling off.

Can You Keep your mortgage if you file Chapter 13 bankruptcy?

In Chapter 13 bankruptcy, you can keep your home and continue with your current mortgage. If you file (and qualify) for Chapter 7 bankruptcy and your home is exempt, you can continue to make your mortgage payments if you want to keep your home.

What happens when you file bankruptcy and Surrender Your Home?

When you file Chapter 7 and surrender the home, the lender does not receive a deficiency judgment. If you already have a deficiency judgment against you, filing Chapter 7 will get rid of it. Filing Chapter 7 gets rid of most, if not all, your unsecured debts. That means you can get rid of credit card debt, medical bills]