This is something you will want to discuss with your attorney in more detail prior to filing bankruptcy. However, generally speaking, you will not lose your home if you file bankruptcy as long as the equity in your property is fully exempt.
In a Chapter 7 Bankruptcy:
If you are filing a Chapter 7 bankruptcy and you want to keep your house, you must be current on your mortgage payments on the date that you file your bankruptcy and remain current. It is very important that you continue to make your monthly house payments on time and comply with the terms of your loan if you wish to keep your house. If you get behind on your payments the mortgage company has the right to file a Motion for Relief from Automatic Stay with the Court asking for permission to foreclose on your home.
In a Chapter 13 Bankruptcy:
A Chapter 13 bankruptcy can stop a foreclosure on your house. If you are behind on your mortgage, there are options under a Chapter 13 bankruptcy that would allow you to catch up on the payments even if your house has gone into foreclosure.
In a Chapter 13 bankruptcy you will be paying back your secured debts (i.e., mortgage payments and car loans), what you were behind on your house prior to filing bankruptcy, and a portion of your unsecured debts over a 3 to 5 year time frame.
If there is excess equity in your property that is not fully exempt you may still be able to keep your home by filing a Chapter 13 instead of a Chapter 7. In a Chapter 13 you would be required to pay back the non-exempt value to the creditors listed in your bankruptcy over the three to five years through your monthly payments to the Chapter 13 Trustee.
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