Can I keep my house after filing for Chapter 7 Bankruptcy?

Yes, you can keep your house after filing for Chapter 7 bankruptcy in California. The most important factor determining whether you get to keep your home is whether you are “above the median” for income in the state. If you are, then you must repay all arrearages, interest, and late fees to keep your house. If you are below the median, then you may not have to repay anything, and the bankruptcy laws will usually allow you to keep your house if you can keep current on your mortgage payments. In California, you are also allowed to protect a certain amount of your equity in your house under certain exemptions. If the amount of your equity is too high, you may be required to sell some of your assets and pay back your creditors before you can keep your house in a Chapter 7 bankruptcy. It is very important to know the laws related to Chapter 7 bankruptcies in your state. Make sure you speak with a qualified attorney to determine your rights and obligations under the law so you can make an informed decision about whether to keep your house or surrender it to your creditors. With the right information and appropriate guidance, you can make the best decision for you and your family during this difficult time.

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