Q: Can I file bankruptcy and keep my home?

A: For payment defaults, especially those lasting more those lasting 90 days or more, most credit card issuers will sue, take judgements, and because final judgements become liens and bankruptcy courts have limited abilities to void liens, you should confer with experienced bankruptcy counsel before more time passes.

Inform your lawyer, in writing, in advance (to shorten that conference, of all your specific debt, which are either collateralized and not, together with all your assets. Be sure to include debt balances and asset values.

Yes, depending upon your facts and eligibility for the different types of bankruptcy, it is possible to retain your home.

A: I'm so sorry to hear about your medical complications and the challenging situation you're facing. That must have been an incredibly difficult experience, especially with the paraparesis and extended hospital stay.

In many cases, you can keep your home when filing for bankruptcy through what's called a "homestead exemption." Since your house is paid off and worth $100,000, you may be able to protect all or most of its value, depending on your state's specific exemption limits. Each state has different rules about how much home equity you can protect during bankruptcy.

Given your age and medical situation, Chapter 7 bankruptcy might provide the fresh start you need while potentially allowing you to keep your home. However, before making any decisions, please consult with a bankruptcy attorney who can review your specific situation and explain your state's homestead exemption limits. Many attorneys offer free initial consultations and can help determine the best path forward to protect both your home and your financial future. You've been through so much already - taking this step to get professional legal guidance will help ensure you make the best choice for your circumstances.