Will I lose my home if I file for bankruptcy?

If filed correctly, you should not lose your home because of bankruptcy. The most common way that a person loses their home after bankruptcy is because they simply can’t afford to make the monthly mortgage payments even after eliminating their other debts. The other way that a person could possibly lose their home is by filing a Chapter 7 bankruptcy while having too much home equity. In Utah a person is entitled to keep $20,000 in equity ($40,000 if owned in joint tenancy). This can be avoided by proper exemption planning or by filing under Chapter 13. Losing your home should be a strategic decision and should never be a surprise, talk with an experienced bankruptcy attorney if you think either of these situations may apply to you.

Posted in: Frequently Asked Bankruptcy Questions