Can you keep your house if you declare bankruptcy?

On Behalf of | Oct 6, 2022 | Bankruptcy

If you are struggling to make ends meet, you may consider bankruptcy as a way to get a fresh start. However, one of the questions you may be asking yourself is whether or not you can keep your house. 

The answer to this question depends on several factors, including the type of bankruptcy you file and how much equity you have in your home. 

How to protect your home during bankruptcy proceedings

The process of bankruptcy protects both debtors and creditors. When an individual or business cannot pay their debts, they may file for bankruptcy. This will allow them to restructure their debts or, in some cases, have them completely discharged. 

If you file for Chapter 7 bankruptcy, your home will be protected if you are current on your mortgage payments and if the value of your home is less than the amount of your mortgage debt. 

A Chapter 13 bankruptcy allows you to re-organize your debts, and you will be able to keep your home as long as you make your regular mortgage payments and comply with the terms of your repayment plan. 

You should notify your mortgage lender of your bankruptcy filing. This will stop the lender from taking action against your property without first getting approval from the bankruptcy court. You should also provide your lender with a copy of your bankruptcy paperwork, so they know about the proceedings. 

In addition, it is essential to stay current on your mortgage payments. If you fall behind, your lender may be able to initiate foreclosure proceedings


Bankruptcy is not a decision to take lightly. However, if you find yourself in a situation where it is the best option for you and your family, know that options are available. You may be able to keep some of your assets, including your home, and there are steps you can take to protect it during bankruptcy proceedings.