Q: Will I lose my home if I file for bankruptcy?

A: Every state has exemption laws, which allow individuals to keep a certain amount of both real and personal property when filing for Chapter 7 bankruptcy.  Consumers can often protect their home, car and some personal property by claiming the proper exemptions on their bankruptcy petition.  If their equity exceeds that which is allowable under their state’s exemption law, debtors may be required to file for Chapter 13 bankruptcy.  In this case, a debtor commonly keeps their property in exchange for following a court-approved repayment plan to creditors.