What will happen to my house?

A.  If the amount of equity (the amount by which the market value of your house exceeds the amount still owing on the mortgage) is less than $5,000.00 ($10,000.00 for a couple) and if your house payments are current and kept current, you will not lose your house even after filing a Chapter 7 bankruptcy. 

If you qualify to file a Chapter 13 bankruptcy you will keep your house even if the equity exceeds the exemption. If you are unsure of the present value of your house, you should consult with a real estate agent or have your house appraised by an SRA (Society of Real Estate Appraisers) appraiser.   Then call your mortgage company (and second mortgage, if there is one) to find out your present mortgage balance.