Can I Save My Home In Bankruptcy?

If you own your home, it is likely one of the most important assets you have. Naturally, whether you can keep your home or not is a big consideration when deciding to file for bankruptcy.

So, can you save your home if you file for bankruptcy? The answer depends on your situation and the type of bankruptcy you file. At The Law Offices of George Castrataro, P.A., we work with many clients who want to retain home ownership and avoid foreclosure above all else. To determine whether this is possible, there are three questions we often ask our clients:

1. Which type of bankruptcy will you file?

In all types of bankruptcy, you are able to keep some of your property — this property is considered "exempt" from the bankruptcy estate. While it is possible to keep your house in both Chapter 7 and Chapter 13 bankruptcy proceedings, it is much easier to do so if you are filing Chapter 13 bankruptcy, because there is more flexibility in which types of property can be considered exempt.

2. How much equity do you have?

If you have little, no or negative equity in your house, it may be easier to exempt it during the bankruptcy process, even when filing Chapter 7 bankruptcy.

3. Will you be able to afford your mortgage after bankruptcy?

Remember, the bankruptcy process is supposed to give you a fresh financial start, not plunge you right back into debt. It is important to be sure you realistically will be able to afford your mortgage after bankruptcy. As much as you would like to keep your house, it may not make long-term financial sense.

Find Out What Is Possible For Your Home

Our experienced bankruptcy attorneys can discuss how realistic it is that you would be able to keep your house during bankruptcy proceedings. Contact our Fort Lauderdale office at 954-573-2003 to schedule a free consultation with a lawyer, or send us an email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.