Houses & Bankruptcy


One of the biggest concerns for homeowners considering filing for bankruptcy is whether they can keep their homes through the bankruptcy process. Homeowners typically file for bankruptcy when they lack considerable equity in their home. Therefore, the vast majority of homeowners do keep their homes in these proceedings. Below is a guide for homeowners filing for bankruptcy.

If I am current on my payments, can I keep my home?

Normally, yes. As long as you are current on your home obligations (mortgage, taxes, dues, etc.), your secured mortgage lenders cannot take your home just because you filed bankruptcy. The only other issue the court analyzing your home is for equity to pay creditors. For most people, this is not a problem.

The law provides for a generous allowance of home equity before the court would look to your home to benefit and pay to your creditors. In most cases, the allowed equity is $75,00. ($105,000 if 60 years or older) after deducting for costs of sale of your home. Therefore, the bankruptcy code allows you to keep your home with as much as $75,000 or $105,000 equity depending upon your age.

Do not trust the County Assessor to be right.

Your property is usually worth a great deal more. Our office can do web market analysis of your home done before your file bankruptcy to ensure the value and the amount of equity in your home. We can also assist you in obtaining a formal market analysis.

If I’m behind on my payments, what can I do to keep my home?

First, Chapter 13 Bankruptcy allows you to catch up your payments over a five-year period. Second, Chapter 7 Bankruptcy allows you the protection of the court for a short time period to catch up on your payments or make arrangements with the bank. Finally, remember that you can always attempt to refinance your home once the bankruptcy is over. Remember you must file your Chapter 13 Bankruptcy prior to the foreclosure sale of your property.

  • We are a Federally Designated Debt Relief Agency and Bankruptcy Lawyers who help people file for bankruptcy relief under the Bankruptcy Code. We do not retain clients on the strength of advertising material alone but only after following our own engagement procedures based on in-person interviews, conflict checks, and retainer agreements. The information contained on this site is intended to educate members of the public generally and is not intended to provide solutions to individual problems. Nor does the use or reliance of information contained on this web site constitute the establishment of a lawyer-client relationship. Readers are cautioned not to attempt to solve individual problems on the basis of information contained herein and are strongly advised to seek competent legal counsel before relying on information on this site. Serving the cities of Arvada, Aurora, Boulder, Brighton, Broomfield, Castle Rock, Centennial, Cherry Hills, Conifer, Commerce City, Denver, Denver Tech, Erie, Evergreen, Greenwood Village, Golden, Highlands Ranch, Lafayette, Lakewood, Littleton, Lodo, Longmont, Louisville, Lone Tree, Morrison, Northglenn, Parker, Thornton, Ft. Collins, Nederland, Rollinsville, and Westminster.

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