Will I lose my home if I file bankruptcy?

Updated: Sep 30, 2020

Bankruptcy almost always comes at a very stressful point in your financial life. If you own a home, it is likely that you are wondering if you will lose your home. The answer, as with most things regarding bankruptcy, is it depends on the circumstance. With a little research, you can put your mind at ease.

Bankruptcy is designed to give you a fresh start. There are exemptions in place to allow you to keep a reasonable amount. If your personal property falls within the exemption amounts, you're good. Chapter 7 exemptions are a little stricter than Chapter 13, therefore, if you have more property a Chapter 13 is a better fit.

Rest assured, Chapter 7 is still a possibility regardless of equity because Florida has very generous homestead exemptions. You can determine equity by taking the market value of your home and subtracting the amount of your mortgage balance.

If you fall into one of these categories that allow you to keep your home, you may find paying your mortgage once your debt is discharged is more manageable than before when you were paying your credit cards. A budget can be a very helpful tool. There are budgeting apps like the free Every Dollar app or You Need a Budget.

In either case, be sure, as always, to do your research or consult an attorney. There are many options out there and it is wise to know all of your options and make informed decisions. The best results come from being armed with knowledge.

Have more questions? Book a free telephone consultation today.

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