I have some equity in my house and I heard that if I have any equity I’ll lose my house if I file Chapter 7 bankruptcy?

The amount of equity that you can protect in a bankruptcy depends on the state that you live in and your individual circumstances. For example, in Illinois, you can protect up to $15,000 equity in the house in which you use as your primary residence. If you own a property with someone else, you are only entitled to half the equity in the property and thus if you have $30,000 in equity, in Illinois, you can file for bankruptcy and not worry about losing your house. In addition, closing costs have to be taken into account, which may allot you even more permissible equity.

In other states such as Arizona, you will be able to protect $100,000 of the equity in your house regardless of whether you have someone else on the title or not. Texas, Florida, Iowa, South Dakota and Kansas have unlimited equity limits. If you want to know if you can protect your house in a bankruptcy, contact an attorney today.