In a bankruptcy, can you file on all unsecured debt but still work with the bank to keep your home?

UPDATED: Feb 23, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Feb 23, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

In a bankruptcy, can you file on all unsecured debt but still work with the bank to keep your home?

Have over $47,000 in unsecured debt. I would like to know if we can file on all that and still keep our mortgage going with the bank to keep our home? Financial issues have us beyond stressed and we don’t want to lose our home on top of it. We have 2 kids.

Asked on February 23, 2011 under Bankruptcy Law, Wisconsin


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Ok, take a deep breath.  I can understand how it must feel to be in this position and feel like there is no way out.  But the answer to your question is yes, you can choose to keep your house in a bankruptcy proceeding.  When property is secured (like a house with a mortgage) rather than unsecured (like credit cards) you have a choice to retain the collateral, and do what is known as reaffirm the debt (sign a written document agreeing to continue making regular or agreed-upon payments on the debt and grant the creditor all prebankruptcy rights upon a subsequent default).  I think that once you get the unsecured debt off your back you will feel a lot lighter and be able to take care of the house and moving forward.  Good luck to you.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption