Can I Keep My House If I File Bankruptcy?

Two things matter: how much equity state law lets you protect, and what the mortgage lender can still do. Equity that fits the homestead may be protected from the trustee. The lender still has a lien. If you are behind, Chapter 13 is the usual tool to catch up. If you are current and equity is protected, Chapter 7 is sometimes enough — until missed payments give the lender a reason to ask the court to lift the stay.

When Chapter 7 can work

When Chapter 13 is the better fit

Property

Determine which homestead exemption law applies and properly claim any available exemption. Recorded judgment liens may impair that exemption and sometimes can be avoided.

Frequently asked questions

Related resources

• Alabama Homestead Exemption — Alabama Homestead Exemption

  When Alabama exemption law applies, Ala. Code § 6-10-2 can protect a qualifying homestead up to the current statutory limits. The statute limits the homestead by both value and size. A mortgage or other valid lien is not eliminated by claiming a homestead exemption, and a judgment lien that impairs an exemption may sometimes be avoidable under federal bankruptcy law.

• Bankruptcy and Foreclosure — Bankruptcy and Foreclosure

  Filing can pause a foreclosure sale that has not already been completed. Chapter 13 is the chapter most often used to catch up missed mortgage payments over time. Chapter 7 may delay a sale but does not, by itself, create a plan to catch up. Timing matters.

• Can Bankruptcy Stop Foreclosure? — Can Bankruptcy Stop Foreclosure?

  If the foreclosure sale has not been completed, filing can pause the sale. If the sale already happened, bankruptcy rarely undoes it. Catching up the loan usually takes Chapter 13 — not Chapter 7 alone.

• Can I Keep My Car If I File Bankruptcy? — Can I Keep My Car If I File Bankruptcy?

  Keeping a vehicle generally requires enough exemption protection for the debtor’s equity and a legally workable approach to the lender’s lien. The applicable exemption law may depend on domicile history. Chapter 7 options can include reaffirmation, redemption when available, or surrender. Chapter 13 may allow arrears to be addressed through a plan and, in qualifying cases, different treatment of the secured claim.

• Georgia Homestead Exemption — Georgia Homestead Exemption

  When Georgia exemption law applies, O.C.G.A. § 44-13-100 can protect qualifying equity in a residence up to the current statutory amount. The exemption is not unlimited. A mortgage or other valid lien remains, and nonexempt equity may affect whether Chapter 7 or Chapter 13 is the better fit.

• HOA Dues and Association Liens in Bankruptcy — HOA Dues and Association Liens in Bankruptcy

  HOA or condominium assessments that became due before filing may be dischargeable as personal liability, subject to liens and other issues. Under § 523(a)(16), qualifying fees and assessments that become due after the order for relief generally remain nondischargeable for as long as the debtor or trustee has a legal, equitable, or possessory ownership interest in the property. A valid association lien is a separate property interest and is not eliminated merely because personal liability is discharged.

• Second Mortgages and Junior Liens in Bankruptcy — Second Mortgages and Junior Liens in Bankruptcy

  A second mortgage or HELOC creates a lien on the property. Discharging personal liability does not, by itself, remove that lien. In the Eleventh Circuit, a wholly unsecured junior lien on a principal residence may be treated as unsecured in a Chapter 13 case when the legal requirements are met. A partially secured homestead mortgage generally cannot be reduced simply to the property’s value, and Chapter 7 generally does not provide the same lien-strip remedy. Property value and lien priority must be established.