Will I lose my house after a bankruptcy?

Will I lose my house after a bankruptcy?

 

A lot will depend on the type of bankruptcy you are filing, how much equity you have in the house, and what you want to do.  In a chapter 13 bankruptcy, your mortgage payments can be bundled into your payment plan, meaning that your mortgage lender will still be getting paid for your home.

In a chapter 7, there are more factors to consider.  If you have equity in your home (meaning you owe less than the value of the home), the trustee will consider your equity as an asset, and you may have to either pay that amount to the trustee or sell the home to cover it.  If you do not have equity in the home, the trustee probably won’t want to take the house because then they need to deal with selling it.  Instead, they usually leave it up to you and the mortgage company to either renew the mortgage (which we can try to get reduced in value and\or interest) or have it foreclosed.

 

 

This information has been prepared for general knowledge purposes and is not intended to serve as legal advice.