If I File For Bankruptcy, Is It Possible For Me To Keep My House?
Authored By: Montana Legal Services Association (MLSA)
Frequently Asked Questions
- Question:If I file for bankruptcy, is it possible for me to keep my house?
Answer: Yes. The most common type of bankruptcy is a Chapter 7 bankruptcy. In a chapter 7 bankruptcy you can keep certain property. That type of property is called "exempt" property. You may have to sell non-exempt property to pay off your creditors. Many people own only property that is exempt and get to keep it all. In Montana, your house is exempt for up to $250,000 in equity. There are also exemptions for other types of property. Before you file for bankruptcy, be sure you understand what will happen. It may affect your credit. Also, it may be that you can avoid bankruptcy. Or, you may wish to file for bankruptcy under Chapter 11, 12, or 13, instead. An attorney can help you understand. Click here for links to forms, information and resources for bankruptcy. Click here for links to forms, information and resources relating to consumer law in general.