Foreclosure & Alternatives Law

Can I Keep My Home If I File Bankruptcy in Washington?

Sometimes. If you file bankruptcy then you have to meet certain criteria in order to keep your home. Specifically, the amount of equity in your home usually cannot be significantly more than that allowed by the state homestead exemption law because if it is then the property may be sold and the equity that is held in excess of the homestead exemption amount can be used to pay creditors. Also, the court must believe that you are likely to be able to continue making regular monthly mortgage payments.
In Washington the homestead exemption is $125,000 for land, improvements on the land and mobile homes. The exemption is limited to $15,000 for other personal property that is used as a primary residence.