Call or Text 951-200-3613 to request an Appointment with Murrieta and Temecula Bankruptcy Lawyer David Nelson Now
951-200-3613
Can I Keep My House in Bankruptcy?
Video Description
Can you keep your house if you file bankruptcy in California? In this video, bankruptcy attorney David Nelson explains how Chapter 7 and Chapter 13 work for homeowners, how California’s homestead exemption protects equity, and the steps you can take to avoid foreclosure. If you’re worried about losing your home in bankruptcy, this guide will help you understand your options and make informed decisions
Understanding Bankruptcy and Your Home
Filing for bankruptcy doesn’t automatically mean losing your house. Many homeowners in California are able to protect their primary residence using the state’s homestead exemption or through a Chapter 13 repayment plan. Knowing your options and understanding the laws can help you keep your home during bankruptcy.
Chapter 7 Bankruptcy: Keeping Your Home in California
Chapter 7 is a liquidation bankruptcy where some assets may be sold to pay creditors. However, California law allows you to protect equity in your primary residence using the homestead exemption. If the equity in your home is within the exemption limits, you can usually keep your house. It’s important to calculate your home’s equity accurately and include all mortgage balances.
Chapter 13 Bankruptcy: Repayment Plans to Save Your Home
Chapter 13 allows you to keep your home even if you are behind on mortgage payments. Under this type of bankruptcy, you create a repayment plan to catch up on missed payments while continuing to pay your mortgage. This option is often preferred by homeowners who want to avoid foreclosure and maintain ownership of their property.
Steps to Protect Your Home in Bankruptcy
-
Gather mortgage statements and property documents.
-
Calculate home equity and determine applicable exemptions.
-
Decide whether Chapter 7 or Chapter 13 is best for your situation.
-
Consult a professional bankruptcy attorney to ensure the proper filing strategy.
Frequently Asked Questions (FAQ)
Q1: Can I keep my house in Chapter 7 bankruptcy?
A1: Yes, if the equity in your home falls within California’s homestead exemption, you can usually keep your house in Chapter 7.
Q2: How does Chapter 13 help me keep my home?
A2: Chapter 13 allows you to repay overdue mortgage payments over a 3–5 year plan while keeping your home.
Q3: Do I need a bankruptcy attorney to protect my home?
A3: While not required, a California bankruptcy attorney can ensure filings are correct and maximize exemptions to protect your home.
Take Control of Your Home and Finances
Need professional guidance? Call or Text 951-200-3613 to Schedule a free consultation with David Nelson to discuss keeping your home during bankruptcy. With experienced guidance, you can protect your property and move toward financial stability.