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

In Iowa, you may be able to keep your house after filing for Chapter 7 Bankruptcy, depending on the equity in your home. Equity is the difference between the value of your home and any outstanding mortgages or other liens. Iowa’s homestead exemption protects up to $47,500 in equity, meaning you can keep your house if it is worth less than that amount and has no mortgages or other liens on it. If your house is worth more than $47,500 and has mortgages or liens on it, you can still keep the house if the equity in it is no more than $47,500. You will need to make payments to your creditors to pay off any excess equity. If you are unable to make payments to pay off the excess equity in your house, you may still be able to keep it if you can arrange to surrender the house, but reinstate the loan at a later date. This means you will be able to release the lien on the house, but will take over the payments after the bankruptcy case is closed. If your house is not covered under Iowa’s homestead exemption, it may be sold by the trustee to pay off your creditors. Overall, you may be able to keep your house after filing for Chapter 7 Bankruptcy in Iowa, depending on the value of the house and any outstanding mortgages or other liens. It is important to speak with an attorney to understand your rights and options when filing for bankruptcy.

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

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