If I File a Chapter 7 Bankruptcy, will I be Able to Keep My House?

Once you have filed a Chapter 7 bankruptcy to stop the foreclosure process on your home, there is nothing that will prevent you from keeping your home. From a practical standpoint though, most mortgage lenders will not “reaffirm” your mortgage debt if you are delinquent in your payments. Remember that this is liquidation type of bankruptcy compared to the reorganization and repayment format of a Chapter 13. Whenever you file a Chapter 7, and are delinquent on your home mortgage payments, there is no court reorganization or repayment plan available allowing you to get caught up on your debts.

However, if you want to keep your home and either refinance or sell it, the Chapter 7 will stop the foreclosure process so that you can do either. From this point of view, the Chapter 7 is a useful and valuable tool. For all practical purposes, filing a Chapter 7 is not typically done in order to keep one’s home on a long-term basis. Our firm, Clark & Washington who is mid-Florida’s largest bankruptcy filer, recommends filing a Chapter 13 if holding onto your home for the long term is what you prefer to do.

Where stopping the foreclosure process is concerned, a Chapter 7 is a very powerful legal tool that enables the homeowner to walk away from their home and property without incurring further financial penalty. It also enables you to get rid of your other unsecured debts such as your credit card accounts. Remember that there are stricter requirements now for filing a Chapter 7. The qualification process involves additional documentation and information that are required as a result of the passage of the BAPCPA of 2005.

Clark & Washington is not only mid-Florida’s largest bankruptcy filer, we have years of experience where stopping the Florida foreclosure process and filing for Florida bankruptcy. If you feel that you are in a position to qualify for a Chapter 7 bankruptcy filing, you should consider contacting one of our Orlando Bankruptcy attorneys to help you with your case. Please feel free to call us at (407) 898-0299 or if you would rather e-mail us, you can fill out the confidential contact form found on this website. We will be more than happy to evaluate your circumstances and answer any questions that you may have regarding Chapter 7 bankruptcy.