How to Keep Your House in Bankruptcy

How to Keep Your House in Bankruptcy


Bankruptcy often brings up fears of losing one’s most valuable assets, especially one’s home. This post aims to shed light on how you can keep your house while navigating through bankruptcy.

Understanding Bankruptcy and Asset Protection

Bankruptcy comes primarily in two forms: Chapter 7 (liquidation) and Chapter 13 (reorganization). Each type has different implications for your assets. Generally, the law provides certain protections for assets, including your home, during bankruptcy.

Strategies to Keep Your House in Bankruptcy

In Chapter 7 bankruptcy, you might be able to keep your home if it falls within your state’s exemption limits. If you have significant equity in your home or your home’s value exceeds the exemption limit, Chapter 13 may be a better option.

This allows you to reorganize your debts and potentially keep your home.

Negotiating with Mortgage Lenders

Negotiating with your mortgage lender can also be a strategy. This might involve loan modifications or reaffirming your mortgage during the bankruptcy process. It’s crucial to understand the terms and implications of these negotiations.

Additional Considerations and Tips

Staying current on your mortgage payments is essential. Familiarize yourself with the bankruptcy exemptions specific to your state, as they can significantly impact your ability to keep your home. Always consider seeking legal advice to tailor strategies to your situation.

Alternatives to Bankruptcy

Before deciding on bankruptcy, explore alternatives like loan modifications, refinancing, or selling other assets. These options might provide a way to handle your debts without the full impact of bankruptcy.


Keeping your house during bankruptcy is challenging but possible with the right strategy and understanding of the law. It’s crucial to make informed decisions and seek professional guidance to navigate this complex process successfully.