Can I Keep My Home After Bankruptcy?

 Posted on January 29, 2025 in Foreclosure

Your home is likely your most valuable asset in more ways than one. Losing your home can be a major financial and personal loss. If you are behind on mortgage payments and facing foreclosure, you are likely also struggling to keep up with any other debts you might have, such as credit card debts or medical bills. You might be considering bankruptcy as a solution but are worried about whether filing for bankruptcy would mean losing your house. In many cases, keeping your home after filing for bankruptcy is entirely possible. Filing Chapter 13 bankruptcy is a highly effective means of keeping your home when facing foreclosure. Even if you file Chapter 7 bankruptcy, there may still be options for keeping your home if that is a priority for you. A San Antonio, TX bankruptcy lawyer can help you strategize to avoid foreclosure during your bankruptcy.

Using Chapter 13 Bankruptcy to Avoid Foreclosure 

When you go through a Chapter 13 bankruptcy, you effectively consolidate your debts into one monthly payment. You keep making one large monthly payment for three to five years, and any unsatisfied debt is cleared. Since you are still making payments towards your debt, you can generally continue paying off your mortgage after the bankruptcy and avoid foreclosure.

Staying current on your monthly payments is especially important if you were facing foreclosure before your bankruptcy. If you default or fall behind on your court-ordered monthly payments, your lender may resume the foreclosure action.

Reaffirming Your Mortgage Debt During Chapter 7 Bankruptcy

One option for keeping your home after bankruptcy is reaffirming your mortgage debt during a Chapter 7 bankruptcy. When you reaffirm a secured debt, you agree that you will continue making payments on the debt and are allowed to keep the property. Your lender will need to agree to this solution. If you are not too far behind on payments and have a reasonable plan for getting caught up, your lender will likely agree to a reaffirmation.

The Homestead Exemption and Chapter 7 Liquidation 

Many people are concerned about having their homes liquidated during a Chapter 7 bankruptcy. Fortunately, your primary residence is usually safe from liquidation under Texas’s Homestead Exemption. Your primary residence and your equity in it can be excluded from liquidation.

Contact a San Antonio, TX Bankruptcy Lawyer 

Law Offices of Chance M. McGhee will work to help you keep your home after your bankruptcy. Experienced Bexar County, TX bankruptcy attorney Chance McGhee can help you choose the right strategy for avoiding foreclosure and staying in your home. Contact us at 210-342-3400 for a complimentary consultation.