If you’re struggling with debt, you may be asking yourself, “Can I file bankruptcy and keep my house?“ The good news is that in many cases, you can keep your home, even if you declare bankruptcy. However, the process depends on the type of bankruptcy you file, your home’s equity, and foreclosure laws in 2025.
At XLNC Exotic Homes, we understand the challenges homeowners face when dealing with financial hardship. We offer a free consultation to explore your options before foreclosure becomes a reality. Call us at +1-858-878-5555 or visit exoticremodel.com for expert guidance.
Understanding Chapter 7 vs. Chapter 13 Bankruptcy
The type of bankruptcy you file will determine whether you can keep your house.
| Bankruptcy Type | Impact on Homeownership |
|---|---|
| Chapter 7 (Liquidation) | If your home equity is within the homestead exemption limit, you can keep your house. If not, the trustee may sell it to pay debts. |
| Chapter 13 (Reorganization) | Allows you to catch up on missed mortgage payments and stay in your home by following a repayment plan over 3-5 years. |
New Home Equity Protection Laws in 2025
According to the latest updates in 2025 foreclosure prevention laws, many states have increased their homestead exemption limits, allowing homeowners to protect more of their home equity during bankruptcy.
✅ Example: In California, the homestead exemption now ranges from $300,000 to $700,000, depending on county median home prices (source: NCLC).
✅ Example: In Texas, homeowners can protect their entire primary residence from creditors under state law (source: Texas Law Help).
How to Keep Your House in Bankruptcy
1️⃣ Stay Current on Mortgage Payments – If you’re up-to-date on payments, the lender is less likely to foreclose, even in Chapter 7 bankruptcy.
2️⃣ Use Homestead Exemptions – Research your state’s exemption laws to determine how much equity is protected.
3️⃣ Consider Filing Chapter 13 – This option allows you to catch up on past-due mortgage payments while keeping your home.
4️⃣ Negotiate with Lenders – Many mortgage companies offer loan modification programs to help homeowners avoid foreclosure.
5️⃣ Sell Your Home Before Bankruptcy – If you’re considering selling, XLNC Exotic Homes provides a free consultation to explore fast home-selling options without foreclosure.
6️⃣ Refinance Before Filing – If you have enough equity, refinancing could help you pay off debts and avoid bankruptcy.
7️⃣ Seek Legal Advice – Consulting with a bankruptcy attorney can help you navigate exemptions and protect your home.
8️⃣ Improve Your Financial Management – Creating a budget, reducing unnecessary expenses, and finding additional income sources can help you maintain mortgage payments.
Foreclosure Trends in 2025
According to U.S. Foreclosure Market Reports:
- Foreclosures increased by 7.2% in Q1 2025 compared to 2024 due to rising interest rates and economic uncertainty.
- 67% of homeowners in financial distress avoided foreclosure by selling their homes to cash buyers or modifying their loans (source: ATTOM Data Solutions).
- Home equity has increased by an average of 8.5%, making selling a more viable option than foreclosure (source: Federal Reserve).
- Average U.S. mortgage delinquency rate in 2025 is 3.1%, slightly higher than pre-pandemic levels.
- States with the highest foreclosure rates: New Jersey, Illinois, and Florida.
- States with the strongest foreclosure prevention programs: California, New York, and Washington.
Alternatives to Bankruptcy
If you’re unsure about filing bankruptcy, here are other options to consider:
1. Loan Modification
Lenders may allow you to adjust your mortgage terms, reducing monthly payments and preventing foreclosure.
2. Selling Your Home for Cash
Instead of going through bankruptcy, selling to a cash buyer like XLNC Exotic Homes lets you settle your debts quickly and move on without legal complications.
3. Debt Settlement
Negotiating with creditors to lower your debt amount can be an alternative to filing bankruptcy.
4. Renting Out Your Home
If you’re behind on payments but have equity, renting out your home could provide income to cover mortgage costs.
5. Hardship Programs
Government and lender programs may offer relief options to struggling homeowners.
XLNC Exotic Homes: Helping Homeowners in Tough Times
If you’re considering bankruptcy but want to explore other options first, XLNC Exotic Homes can help. We offer:
✅ Free consultations to discuss your home-selling options ✅ Cash offers to help you sell quickly before foreclosure ✅ Fast closings so you can move on without legal hassle ✅ No hidden fees or commissions
📞 Call us today at +1-858-878-5555 or visit xlncexotic.com to schedule your free consultation!
Final Thoughts
So, can you file bankruptcy and keep your house? The answer depends on your financial situation, state laws, and the type of bankruptcy you file. Whether you choose Chapter 7, Chapter 13, or an alternative like selling your home, make sure you understand your rights and options.
At XLNC Exotic Homes, we specialize in helping homeowners navigate financial difficulties. Contact us for a free consultation today and explore solutions tailored to your needs!
📞 +1-858-878-5555 | 🌐 xlncexotic.com
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