Can I keep my house if I file Chapter 7 Bankruptcy?

Tennessee allows an individual to protect up to a certain amount of equity in their primary residence when filing a Chapter 7 bankruptcy.  The exact amount of equity that may be protected depends upon several factors including age, if the person filing is married, and if the person has children under 18 years old.  If the person has equity under the exempt amount or no equity at all, then it may be possible to keep the home.  In order to do so, then the person must be current on their loan.  This is necessary because to keep the home then the person filing must enter a reaffirmation agreement to continue his or her financial responsibility on the home after the bankruptcy.  If however, the person filing is not current on his or her loan, then the mortgage company will not agree to the reaffirmation.  Before entering into a reaffirmation agreement, it is important that you discuss the possible ramifications with your Bankruptcy attorney.