You can use Chapter 7 bankruptcy to save your house if: you’re current on your mortgage payments when you file (or you can get current in a hurry), and. your equity in the house (if any) is adequately protected by the exemption laws available to you in your state.

What happens to my house after Chapter 7?

Due to the mechanics of Chapter 7 Bankruptcy, you will likely receive a discharge and no longer be legally obligated to personal repay the loan. However, the lien on the property will remain, and the lender will still have a right to foreclose on the property if the debt is not paid.

How soon after Chapter 7 can I sell my house?

The time can be as brief as six months or as long as two years. Also, you might live in a state wherein the courts have concluded that the Chapter 7 trustee cannot collect the sales proceeds even if the state law exemption period has expired.

How much equity can you keep when filing Chapter 7?

Some allow you to protect as little as a few thousand dollars in equity. In another, you can exempt up to $500,000, or even the entire value of the real property. But most states fall between these extremes. You can learn more about exemptions in all 50 states in Bankruptcy Exemptions by State.

What happens to your home in Chapter 7 bankruptcy?

In Chapter 7 bankruptcy, most or all of your debts are discharged. In exchange, the trustee is entitled to sell your nonexempt property and use the proceeds to pay your unsecured creditor. That means that if your home has a significant amount of nonexempt equity, the trustee will sell it.

Can You Keep your mortgage if you file Chapter 7?

However, if you are current on your mortgage when you file the Chapter 7 bankruptcy, most bankruptcy courts allow you to keep paying your mortgage, and continue to retain your home if you so choose.

Can a Chapter 7 bankruptcy stop a foreclosure?

Although Chapter 7 bankruptcy can temporarily stop foreclosure proceedings, it’s ability to ultimately save your home from foreclosure is limited.

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.