As a general rule, you can keep your home in a Chapter 7 Bankruptcy if you are current on your mortgage and your equity in the home is less than or equal to the allowable exemptions for your home. If you do decide to keep your home, you may be asked to reaffirm your debt obligation to the mortgage company. This is a big decision and you should consider it carefully. We generally do not recommend reaffirming a mortgage in Chapter 7, and as of this date we are not aware of any bank foreclosing on a home where the payments were current, even if the home owner filed for bankruptcy.
