Bankruptcy and Your Home

Many homeowners fear that they will either be unable to qualify for bankruptcy protection and ask: is it legal to remove a bankruptcy, or that they will lose their home if they file, but this is not always the case. Every state offers a homestead exemption to protect homeowners from losing their home to bankruptcy or liens placed by creditors, but the amount of the exemption varies from state to state. If the equity in your home exceeds the value of the exemption you will not be able to file for Chapter 7 bankruptcy, but you may still be able to qualify for Chapter 13 protection. Consult a qualified bankruptcy attorney in your area to find out what option will best protect your home.