UScourts reports that bankruptcy filings have increased by 16.8 percent from last year. This brings several questions in your mind when you think of filing bankruptcy.   Can you keep your house if you file bankruptcy? оr Do you lose your house in bankruptcy? оr How long after filing bankruptcy can you buy a house? оr If I file for bankruptcy what happens to my house?  To answer these, there are several rules and guidelines regarding protecting assets like a house/car, other properties, etc. In this handy guide, we will answer several common questions related to Chapter 7 and 13 bankruptcy. You will be able to make an informed decision according to your current financial condition.   Chapter 7 vs Chapter 13 Bankruptcy: Which Helps You Keep Your Home?  As per BankruptcyWatch, Chapter 7 filings increased by 9.16% from last year in 2024 while Chapter 13 filings increased by 6.29% from last year in 2024. This makes you wonder how to file bankruptcy and keep your house? Both Chapter 7 and Chapter 13 bankruptcy serve different purposes.   Chapter 7 Bankruptcy is also known as liquidation bankruptcy. It clears your unsecured debt but you have to sell the non-exempt assets. The trustee will sell your home and other properties with significant equity to repay your creditors. Several states offer homestead exemption where you can protect your home. If you are up-to-date on the mortgage payments then you can keep your home.  How to declare bankruptcy and keep your house? In this case, you can opt for Chapter 13 bankruptcy. It is an ideal choice when you are behind on your mortgage payments. You can get a 3–5-year plan to catch on the mortgage and deal with unsecured debt. You can follow the plan and make future payments to keep your home.   What Happens to Your House If You File Bankruptcy?  Do You Lose Your House in Bankruptcy? Exploring the Possibilities  Can you file bankruptcy and keep your house? Well, it depends on the type of bankruptcy you are filing.  In Chapter 7, if your home equity is higher than the homestead exemption, then you may lose your home. If not, there is a high possibility that you can keep your house. In Chapter 13, you can follow the repayment plan properly and keep your house.   What Happens to Mortgage Payments During Bankruptcy?  You have to stay up-to-date with mortgage payments in Chapter 7 bankruptcy. In Chapter 13, all your previous missed payments will be included in the repayment plan. You can repay them in 3-5 years. Also, you have to make regular payments to your lender to avoid losing your house.  Can You File Bankruptcy and Keep Your House and Car?  You may wonder if I file bankruptcy what happens to my house. Well, you can keep your essential assets like house and car in both Chapter 7 and Chapter 13.  You can keep them in Chapter 7 if the equity of your asset falls within the set expectations. Chapter 13 allows you to catch up on your loans and mortgage payments. You can keep both assets while clearing the payments in 3-5 years.  How long after filing for bankruptcy can you buy a house?  Thinking about how long after bankruptcy can you buy a house? Or How to buy a house after bankruptcy Chapter 7? There is a waiting period of 2-4 years after the discharge. Then you can get mortgage approval.  In Chapter 13, you can buy a house even under the repayment plan. You will need permission from the bankruptcy trustee. Otherwise, there is a waiting period of 2 years after which you can apply for a mortgage.  Key Factors to Consider Before Filing Bankruptcy to Keep Your House  Legal and Financial Considerations for Homeowners in Bankruptcy  There are some things that you need to keep in mind before filing for bankruptcy.  Type: You have to pick the right type of bankruptcy. Chapter 7 and 13 have different requirements. You have to understand them properly and pick the one that caters to your current situation.  Credit Score Impact: Bankruptcy will have a severe impact on your credit score. So, understand the damage and take the necessary steps to rebuild it for the future.  Homestead Exemption: You have to learn the exemption limit of your state. In this way, you can plan to protect your assets that come under its limit.  Mortgage Payments: If you are behind your payments, then you can opt for Chapter 13. It will allow you to repay them in some years. It is a better strategy than Chapter 7 bankruptcy. You don’t have to liquidate your assets.  How to Work With a Bankruptcy Attorney to Protect Your Home   Can you buy a house after bankruptcy? Can you lose your house in bankruptcy? Can you file bankruptcy and keep your house and car? etc. A professional attorney will guide you through the process and answer all your queries.  He/She will go through your current condition and help you file the correct type of bankruptcy. Also, your attorney will negotiate with your lender to find some other alternatives. He/She will try to maximize your exemption and handle all the legal proceedings.  The post How to File Bankruptcy and Keep Your House appeared first on Santa Clarita Valley Signal.