Will I Lose My Home If I File Bankruptcy?

Many callers ask the same question “will I lose my home if I file for bankruptcy?”
Your home is your most valuable asset.
Over the last 30+ years of helping people file for bankruptcy protection the most concern by homeowners is if they will lose their home.  My answer – “it depends”.  Do you want to keep your home?  If so, then make sure to pay the mortgage and homeowners’ dues.  If the answer is ‘no’ then stop paying and we will talk about how long you have before the lender can foreclose (see article for more information).
What is you want to keep your home, but are behind in mortgage payments?
Don’t assume you know the answers – ask an experienced attorney.
For consumers there are two types of bankruptcy.  The first is a chapter 7.  In this bankruptcy you can keep your home, but only if you find a way to bring all your mortgage and HOA payments current (usually within just a few weeks or a couple of months).  Some people elect to withdraw from their retirement accounts or borrow money from family or friends.
If you cannot bring your mortgage current in a few weeks then you can try a chapter 13.  This allows you to make your new mortgage payment, plus pay extra to bring the missing payments current; usually paid out over a 3 to 5 year period.
WARNING: In Arizona almost half of all chapter 13 cases fail, assuming you work with a very experienced chapter 13 attorney.  The failure rate for those not working with very experienced chapter 13 attorney is more than 98 percent.
So can you keep your home if you file for bankruptcy?  “It depends”.

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