Can someone keep their house if they file for bankruptcy?

Possibly, they need to discuss their finances with an attorney.

Normally, yes. But, that assumes your friend lives in Arizona and has less than $150,000 equity in her home.

Yes, almost always, but you still have to finish paying for the house.

If there is no equity in the home, a client can keep the home. If there is equity, it can be more complicated, but they may still be able to keep it, depending on how much equity is in it.

Yes, you can generally keep your house if you file bankruptcy, but only if you can pay for it. If your friend is behind on her payments, she can get time to catch up by filing under Chapter 13, but she'll have to continue paying her regular payments in order to keep the house.

It depends. If your friend is current on the mortgage payments then she can keep her house in either a Chapter 7 or a Chapter 13. If she is not current on her mortgage payments and the house is under water (the mortgage balance is more than the current value of the house), then she will lose the house in a Chapter 7. However, if she can afford to make the mortgage payments going forward then she may be able to keep the house in a Chapter 13, if she can also afford a monthly Plan payment based on her Disposable Monthly Income.

It is possible to keep your home after filing bankruptcy, but there are several different ways the home is handled. In a Chapter 7 bankruptcy the mortgage must be kept current to keep the home. A chapter 7 will stop a foreclosure only until the lender can get the automatic stay lifted by the bankruptcy court. If the loan is not current, the lender should have little problem having the stay lifted. In a Chapter 13 bankruptcy the bankruptcy plan can provide for a period of time for the borrower to catch up on the past due mortgage payments and costs in addition to resuming regular payments. It may also be possible in a Chapter 13 bankruptcy through mediation to obtain a mortgage modification that could change the terms, extend the loan or possibly forgive some of the principal of the loan. A bankruptcy attorney could explain these options in greater detail and see if any of these options would work for your friend.

Yes, however you will have to continue making the monthly mortgage payments. However, if you are behind there is a way to get caught up on the past due amount through Chapter 13 bankruptcy. I suggest you consult with a bankruptcy attorney to discuss the details of the specific situation.

Sometimes a person can retain the house but it depends upon a few factors. Since there are some variables that influence an outcome like this, it would be best to have a conversation with an experienced bankruptcy attorney.

At the moment a Bankruptcy is filed an automatic stay is put into place preventing any creditor from taking any action to collect. That includes (as is often the primary reason) mortgages. After that is depends. There are three types of consumer bankruptcy Ch 7 , 11, and 13. I will describe briefly 7 and 13. A Ch 11 is a lot like a 13, not the same but close enough for a simple comparison, without the ~$1,000,000 debt limit on mortgages (and other secured debt) and the ~$350,000 limit on unsecured debt. A Chapter 7 is a short, ~ 90 day process, that takes in all assets, debts, and other financial status into "the bankruptcy estate." The purpose is to take "non-exempt" assets and sell them to pay off creditors. For every client I've ever had, ALL assets are exempt. Nothing gets taken. Dischargeable, unsecured debts get wiped out, and the debtor keeps everything. That is a very typical Chapter 7 Bankruptcy. At the end of the bankruptcy the Stay ends. While many Debtors use the 90 days during the stay to try to work out a loan modification, without a modification or a repayment of the past due amount the status of the Mortgage is just about the same as it was before. It tends to buy time rather that save the home. A Chapter 13 Bankruptcy, meanwhile, is designed to give a debtor time to repay past due amounts. Unfortunately there is a minimum amount of regular income that is necessary. if your friend has been unable to pay the loan because of an unemployment and (s)he is currently still unemployed, this will not not be a solution. A Chapter 13 Bankruptcy take 3-5 years with monthly payments due every month. The outstanding balance currently due on secured debts, along with other classes of debts that must be paid back over the course of the bankruptcy is divided by 36 or 60 and paid back over that time. The remainder of the disposable income (which should be income - reasonably necessary expenses) is used to pay unsecured creditors, those who typically receive nothing in a Chapter 7. While you may pay more to unsecured creditors in a Chapter 13 bankruptcy you have years to catch up on your mortgage as long as you keep up with the current mortgage payment and the Chapter 13 plan payments. The best choice for her/him will depend on the details of the case. You should have your friend contact an attorney to see if there is a good option.

She can keep it if she can make regular mortgage payments. If she owes back payments, she will need to be current or pay the arrearage and principal in a Chapter 13.

When you file a Chapter 7 bankruptcy, you have a choice as to whether or not to reaffirm a debt that is secured by property, such as your home or car. If you do not reaffirm, the debt is eliminated and the creditor may take the property, although the property may not be taken if the creditor choses to let you retain it as long as you continue making payments. Whether you affirm the debt, meaning you intend to continue making the payments, or don't reaffirm the debt, the creditor may take the property if you stop making payments according to the purchase agreement.

Yes. A Chapter 13 bankruptcy could allow your friend to retain her home. You should have your friend contact an attorney to discuss whether a Chapter 13 would be possible with her income situation.

Yes. If your friend is behind on the mortgage and needs time to bring the account current, he can file a chapter 13 bankruptcy. The debtor will make monthly payments to the chapter 13 trustee for a maximum of five years. The trustee will use the money to bring the mortgage current. The debtor must be able to pay the regular monthly mortgage payment going forward along with the monthly trustee payment.

Yes, you can keep your home while filing bankruptcy. You must continue to keep the payments on the mortgage current, while perhaps curing any arrearages by paying them as well over the life of a 3-5 year 13. Your friend needs to file a 13 before the sherriff's sale, as the automatic stay that goes into effect on the day of filing bankruptcy stops the sale, and then allows the debtor to cure the arrearage over time.

It is possible to save a home from foreclosure by filing a Chapter 13 bankruptcy. The case must be filed before the Sheriff's sale and the plan must include the regular monthly mortgage payments and a monthly payment towards the arrears. The arrears must be paid in full by completion of the plan.

If you are allowed to reaffirm the debt and can afford to keep paying for the house, you would be able to keep it after the bankruptcy. The court will decide it, based on your income. Without the other debt payments, you may very well be able to keep the house.