Can I keep my house in bankruptcy?
The answer is usually, it depends!
Chapter 7: According to Utah’s Exemption statute, a person who owns real estate in Utah is eligible for up to $30,000.00 worth of protection for the equity you have in your home. For example, if a home is worth $130,000 and the mortgage is $100,000, you would have $30,000 in equity. That $30,000 in equity would be protected from creditors in a bankruptcy. However, if the home is worth $230,000 under those same circumstances, that person could lose their home by filing bankruptcy.
Chapter 13: Home values work differently in chapter 13. The chapter 13 trustee generally does not have authority to liquidate (sell property) but a person does have to pay back to their creditors in a chapter 13 payment plan the equity above their exemption amount.
