If I file for bankruptcy, will I lose my home?
If you are current on your payments, you will be able to keep your home if it falls under your applicable state’s homestead exemption. In Arizona, the homestead exemption is $150,000. This is the maximum amount of equity you can have in your home. If you subtract the mortgage balance from the value of your home, you should have an idea of if you’re in the range of $150,000. However, you should check with an attorney to see which state’s exemptions you will use, and if your home qualifies under those exemptions.
If you are renting your home, you should keep paying your rent as you will not lose your lease in the bankruptcy. Your landlord will not be notified of your filing. You should let your attorney know about any security deposits or similar funds owed to you.
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