Filing for bankruptcy is a major decision, and one of the biggest concerns people have is whether they can keep their house. The answer depends on the type of bankruptcy you file, how much equity you have in your home, and whether you can keep up with your mortgage payments. Our Wagoner bankruptcy attorneys are here to break down your options.

Understanding the Oklahoma Homestead Exemption

Oklahoma offers one of the most generous homestead exemptions in the country. This exemption allows you to protect the full value of your primary residence, regardless of its size or value, as long as it is located on up to one acre in a city or town, or up to 160 acres in rural areas.

This means that in most cases, filing for bankruptcy will not automatically mean losing your home, as long as it is your primary residence and you meet state residency requirements.

Chapter 7 Bankruptcy and Your Home

In a Chapter 7 bankruptcy, non-exempt assets may be sold to pay creditors. However, because of Oklahoma’s homestead exemption, most homeowners are able to keep their home—provided they are current on their mortgage.

• If you are behind on payments: The lender can still foreclose even though the debt itself is discharged.
• If you are current on payments: You can usually keep the house and continue making payments as normal.

Chapter 13 Bankruptcy and Your Home

In a Chapter 13 bankruptcy, you create a repayment plan to catch up on missed payments while keeping your assets, including your home. This can be especially helpful if you are behind on your mortgage but want to prevent foreclosure.

What if You Have Significant Equity?

If your home’s equity is unusually high (for example, if it is not your primary residence or exceeds exemption limits), the bankruptcy trustee could attempt to sell it in a Chapter 7 case. Consulting with an experienced bankruptcy attorney can help you understand how exemptions apply to your unique situation.

Wagoner Bankruptcy Attorneys

For most Oklahoma residents, filing for bankruptcy does not automatically mean losing your house. Oklahoma’s homestead exemption and the ability to restructure mortgage debt in Chapter 13 make it possible to keep your property while getting relief from other debts. Our skilled counsel at Wagoner Attorneys is here to help. Call us at 918-283-7394 for a free consultation. Or you can follow this link to ask a free online legal question.