Yes, you can keep your home as long as:
- $75,000 if you are single,
- $100,000 if you are a part of a family unit, or
- $175,000 if you are over 65 or physically disabled or under 55 with less than $15,000 in annual income ($20,000 if married)
If you do not keep current with your mortgage payments, you can still lose your home outside of bankruptcy. The normal foreclosure process will begin after your automatic stay is lifted.
Even if you are current on your mortgage payments, you can still lose your home if you have a significant amount of nonexempt equity in your house. Your bankruptcy trustee can sell your house in order to pay off unsecured creditors. However, California provides a generous homestead exemptions that protects equity in your house for up to:
- $75,000 if you are single,
- $100,000 if you are a part of a family unit, or
- $175,000 if you are over 65 or physically disabled or under 55 with less than $15,000 in annual income ($20,000 if married)
With the help of an attorney, there are different ways to protect your home through exemption planning.
If you have any questions about bankruptcy, please call 1st California Law at (949) 735-8499 for a free attorney consultation.