Q: Can I keep my house and still file for bankruptcy?
A: Under certain circumstances, you may file bankruptcy yet keep your residence. Bankruptcy law provides that a certain amount of your home equity is exempt from the claims of creditors. Thus, if your property is subject to a mortgage or other lien, and you are current on the related installment payments, and your equity does not exceed the statutory exemption amount, as a practical matter, you should be able to retain your residence.
The answer is almost always yes. If you are current on your mortgage and do not have a lot of equity in your house you re good to go. The "lot of equity" will depend on what state you live in and a couple of other things. You need to talk with a bankruptcy attorney in your state.
I you are behind in your mortgage but can get caught up over several years while paying all of your normal bills, you can keep your house. Once again you need to consult a bankruptcy attorney in your state.
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