In Chapter 7, as long as you are current on your payments and meet the equity limits, you can keep your home. In California, there is a homestead exemption up to the following amounts:
(1) $75,000 is single debtor.
(2) $100,000 if debtor is family unit.
(3) $175,000 if debtor or spouse is at least 65 years old, disabled, or if annual income is less than $15,000 or $20,000 if married.
Refer to California Exemption Chart.

You are given the same equity limits in Chapter 13 as Chapter 7. But you do not have to be current on your mortgage. In Chapter 13, you are given up to 5 years to repay the missed mortgage payments.

Posted in: Bankruptcy Myths Faq