Can I Keep My House in Chapter 7 Bankruptcy?

Written by True Tamplin, BSc, CEPF® | Reviewed by Editorial Team

Updated on December 14, 2022

You can keep your house in Chapter 7 bankruptcy if you are current on your payments and you can protect the equity in your home.

In order to protect the equity, you need to file a bankruptcy exemption on your house.

If you cover the equity, you may keep it. If not, the trustee overseeing your case will sell it.

Do You Lose Your House in Chapter 7 Bankruptcy?

You can lose your house in Chapter 7 bankruptcy if you are unable to protect the equity.

If you can protect the equity, and you are currently on your payments, then you may be able to exempt your home and keep it.

Can You Buy a House After Chapter 7 Bankruptcy?

Buying a home after Chapter 7 bankruptcy may be difficult, but is likely still possible. The usual waiting period required by lenders is two years. After that, you are free to apply. The FHA also offers loans with more lenient credit requirements than traditional lenders.

Can I Buy a House After Filing Chapter 7 Bankruptcy?

Buying a house after filing Chapter 7 bankruptcy is possible, but only after some time. Getting a loan during the bankruptcy process is likely not possible, and you must wait at least two years after discharge or dismissal to qualify for a home loan.


What does bankruptcy mean?

Bankruptcy is a legal proceeding in which a debtor declares their inability to pay back their creditors.

What are the different types of bankruptcy?

There are three common types of bankruptcy known as “chapters” in the U.S. bankruptcy code, Ch. 7, Ch. 11, and Ch. 13, each with varying criteria and consequences.

What is Chapter 7 bankruptcy?

Chapter 7 is known as a liquidation bankruptcy. Most of your property will be sold to pay off your debts, then whatever debt in excess of the value of your liquidated property will be cleared.

What is Chapter 13 bankruptcy?

Chapter 13 bankruptcy is a reorganization bankruptcy. With Chapter 13, you are able to keep your personal property and reorganize your debts to a payment schedule that enables you to pay back your creditors over time (often 3 to 5 years).

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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