Cunningham, Chernicoff & Warshawsky, P.C.
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Will I lose my home if I file bankruptcy?

You may have heard that you cannot protect equity in your home when you file bankruptcy in Pennsylvania. This is not the case. Under federal bankruptcy laws, you can protect up to $23,675 in equity for a primary residence when you file Chapter 7 bankruptcy.

The purpose of filing bankruptcy is to give you a fresh financial start - not leave you financially destitute. For this reason, bankruptcy laws provide exemptions to protect certain assets from being taken by creditors when you file bankruptcy.

The federal bankruptcy exemption applies only to a primary residence. It does not apply to commercial property or to a second home. In order to keep your home, you will need to get caught up on payments. Filing bankruptcy may be the best way to help you get caught up.

  • Filing bankruptcy will put an immediate stop to a foreclosure action and give you time to get caught up on your payments.
  • By discharging unsecured debts such as credit card bills, you may find it easier to afford your mortgage payments
  • You may be explore options such as a mortgage modification to reduce the amount of your payments.

If you own property that isn't protected by federal bankruptcy exemptions, or you have more than $23,675 in home equity, you can protect your property and reduce your debt by filing Chapter 13 bankruptcy. Chapter 13 bankruptcy is a court-approved payment plan that gives you time to restructure your debts.

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Cunningham, Chernicoff & Warshawsky, P.C.
2320 North 2nd Street
Harrisburg, PA 17110

Toll Free: 866-534-4404
Phone: 717-260-3527
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Harrisburg, PA 17106