Is it true that if I filed bankruptcy, I automatically lose the house? 25 Answers as of May 01, 2014

We are purchasing the home from the owners. After financial problems, we felt it better to file bankruptcy to protect ourselves.

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Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
No! You do not automatically lose your home when you file for bankruptcy. However you need to disclose how much equity you have in the home and be able to properly exempt it. Also, as you are purchasing the home from the owners you would be required to give them notice.
Answer Applies to: California
Replied: 5/1/2014
The Law Office of M Grater LLC
The Law Office of M Grater LLC | Mark O. Grater
As long as you can still make the mortgage payments and you can exempt any equity in the house, you can file for bankruptcy and still keep it.
Answer Applies to: Connecticut
Replied: 5/1/2014
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
No that is not true. If you file bankruptcy and fail to disclose the house, you automatically lose it. You need to calculate your equity in the house and compare that with the appropriate homestead exemption. Everything you own, everything you owe, everything that is owed to you - your entire financial picture - must be disclosed in your Bankruptcy case. Please go get a consultation with a local knowledgeable bankruptcy attorney. They can tell you what you can keep and make suggestions based on your particular situation.
Answer Applies to: California
Replied: 4/30/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You don't lose a home in bankruptcy unless there is more equity in the home then you have in exemptions.
Answer Applies to: New York
Replied: 4/30/2014
Ronald K. Nims LLC | Ronald K. Nims
In Ohio, you have $125,000 (each) of exemption in your residence that is a protected asset. So, if you are buying a $500,000 house and owe $300,000. The $200,000 of equity is protected. If you're current on your payments, you can sign a reaffirmation agreement with the lender. If you're behind on your payments, and the lender isn't willing to let you reaffirm, switch to Chapter 13. That gives you 5 years to catch up on the back payments and the lender doesn't have any choice.
Answer Applies to: Ohio
Replied: 4/29/2014
    EDWARD P RUSSELL | EDWARD P RUSSELL
    No, that is not true. You should be able to exempt any equity in the house from the bankruptcy estate either by way of the Federal of State exemption.
    Answer Applies to: Minnesota
    Replied: 4/29/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    No, that is not true.
    Answer Applies to: Colorado
    Replied: 4/29/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Nothing in bankruptcy is automatic. Whether you will lose your house will depend on whether you will be able to afford to continue making the house payments after you file bankruptcy and how much equity you have in the house when you file.
    Answer Applies to: Nevada
    Replied: 4/29/2014
    Portland Bankruptcy Law Group
    Portland Bankruptcy Law Group | Christopher J. Kane
    No, you will not automatically lose your house if you file bankruptcy. Whether you will lose the house depends on a number of factors, and you should consult an experienced attorney.
    Answer Applies to: Oregon
    Replied: 4/29/2014
    Law Office of Shawn N. Wright | Shawn N. Wright
    I'm not sure where you heard this information, but your ability to protect your property (house, cars, bank accounts, etc.) will depend on laws known as bankruptcy exemptions. The exemption laws are different from State to State, so this will depend on where you live. I practice in Pennsylvania and I have never heard of a situation in which someone who filed bankruptcy suddenly and unexpectedly lost their home due to filing bankruptcy. Here, a single person who owns a home can protect more than $23,000 in home equity. So, for example, if someone owned a house worth $120,000 and their mortgage balance was $100,000, then they would be able to "exempt" or protect the house, because they only had $20,000 in home equity, which is within the exemption amounts provided. Set up an appointment with a bankruptcy attorney who can review your case for you.
    Answer Applies to: Pennsylvania
    Replied: 4/29/2014
    Danville Law Group | Scott Jordan
    No, it is not true that you will automatically lose your house. In fact, most of my clients have been able to keep their homes because of the bankruptcy.
    Answer Applies to: California
    Replied: 4/29/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Losing the house is NOT automatic. If you have equity see, see a lawyer. If you have a purchase contract directly with the previous owner, see a lawyer (many of these are not done right).
    Answer Applies to: California
    Replied: 4/29/2014
    John Ceci PLLC
    John Ceci PLLC | John Ceci
    It's not necessarily automatic but it is a possibility. This is a situation best discussed with an attorney - there are reasons why you should try to stay in the home and reason to walk away. But it's hard to say much more than that without knowing the specifics of your situation.
    Answer Applies to: Michigan
    Replied: 4/29/2014
    Idaho Bankruptcy Law | Paul Ross
    No. Typically you can keep your home in most bankruptcies. There are factors that affect this, but your attorney can make sure they are not issues.
    Answer Applies to: Idaho
    Replied: 4/29/2014
    Michael B. McFarland, P.A. | Michael B. McFarland
    Not necessarily. If you are purchasing on an owner contract, and are current on your payments, and in full compliance with the contract, the filing of bankruptcy is not likely to cause a default. You may, if you have some equity in the property, want to consider a reaffirmation agreement; however, you should consult with an experienced bankruptcy attorney, who should review your contract (and other related documents) before making your decision.
    Answer Applies to: Idaho
    Replied: 4/29/2014
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    No. There's no truth to that.
    Answer Applies to: Massachusetts
    Replied: 4/29/2014
    LAW OFFICES OF CRAIG BURNETT | Craig Alan Burnett
    No. If the amount of equity exceeds your exemption, then the trustee may sell it for the benefit of your creditors. The typical exemption for married homeowners is $100,000.
    Answer Applies to: California
    Replied: 4/29/2014
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