Can I keep my home when filing for bankruptcy?

The answer to the question of whether you can keep your home when filing for bankruptcy in Washington depends on your specific circumstances. In order to keep your home, you must have enough money left after other debts are paid off to make payments on the mortgage. If your income is not enough to cover the monthly payments, you may be able to set up a Chapter 13 bankruptcy. This type of filing allows you to make a repayment plan to pay back some of your debts. If you have a home equity loan or line of credit, you may still be able to keep your home if the value of the equity is less than the amount of debt you owe and your total debt does not exceed the state’s limit. You may also be able to keep your home if your home’s value is less than the amount of debt you owe. This is referred to as a “cramdown.” The court will reduce the amount you owe on your debt to match the value of your home. In addition, you may be able to keep your home if you have filed for a Chapter 7 bankruptcy and you have a homestead exemption that applies to your particular situation. Generally, the homestead exemption will protect the equity you have in your home, up to a certain amount. It is important to speak to an experienced bankruptcy attorney in order to determine if you qualify for any of these options.

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Can I keep my home when filing for bankruptcy?

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