Options Every Homeowner Should Know
Filing for bankruptcy is never an easy decision. Whether it’s due to job loss, mounting debt, or medical expenses, the process can feel overwhelming—especially when your home is involved. If you’re wondering what happens to your house during bankruptcy, you’re not alone.
At Lifting Mountains Capital, we believe knowledge is power. Here’s what you need to know about your options and how to protect what matters most.
🧾 First, Understand the Type of Bankruptcy
Most individuals file under Chapter 7 or Chapter 13 bankruptcy:
- Chapter 7 – Also known as “liquidation bankruptcy,” this may require selling off non-exempt assets (sometimes including your home) to pay creditors.
- Chapter 13 – Known as “reorganization bankruptcy,” this lets you keep your home while restructuring your debts and creating a payment plan over 3–5 years.
Can You Keep Your Home?
It depends on three key factors:
- Your equity in the property
- Whether you’re current on mortgage payments
- State and federal exemption laws
If your home has little to no equity, it may be exempt and safe from creditors in a Chapter 7. If you’re behind on payments, Chapter 13 may give you time to catch up and avoid foreclosure.
What Are Your Options?
Here’s a breakdown of realistic paths homeowners can consider during bankruptcy:
1. Stay in Your Home & Reaffirm the Mortgage
- If you can afford the payments and your home is exempt, you may keep your home and continue paying the mortgage.
- This is more common in Chapter 13 cases.
2. Sell the Property Before Foreclosure
- Selling proactively can help preserve your credit and give you more control over the process.
- Lifting Mountains Capital can offer fair, fast, and flexible cash offers with zero pressure, so you can walk away on your terms.
3. Short Sale
- If you owe more than the home is worth, your lender might agree to a short sale, selling it for less than what’s owed.
- This requires lender approval but may reduce your debt burden without the hit of foreclosure.
4. Let It Go (Foreclosure)
- In some cases, walking away is the only viable option, but it comes with long-term credit damage.
- Bankruptcy may delay or temporarily stop foreclosure with an automatic stay, giving you time to regroup.
Bonus Tip: Consult a Bankruptcy Attorney
Bankruptcy laws are complex and vary by state. Always speak with a licensed bankruptcy attorney to explore your rights and best-case outcomes.
How Lifting Mountains Capital Can Help
If you’re considering bankruptcy or already filed, and your house is part of the equation, we’re here to help.
We specialize in working with homeowners in tough situations:
- Fast, hassle-free property evaluations
- No repairs or cleanup needed
- Flexible closing timelines
- No agent commissions or hidden fees
We’re not just investors, we’re neighbors who believe in lifting up our communities, one home at a time.
📞 Ready to Talk?
Reach out today for a free, no-pressure consultation. Let’s explore your options and help you move forward with confidence.