Will I lose my house if I file Chapter 7?

There is no general answer, because the question turns on your equity, your state's homestead exemption, and whether the mortgage is current. Under 11 U.S.C. § 541 filing creates an estate that includes your property interests, and § 522(b)(1) lets an individual debtor exempt property back out of it. Official court guidance is explicit that a lender may still have the right to foreclose a mortgage even after a discharge.

How is equity calculated for bankruptcy purposes?

Generally, the property's value minus the liens against it. Section 522(a)(2) defines "value" as fair market value as of the date the petition is filed, so the measuring date is fixed by statute rather than by when you started the process. Several state statutes use the same structure — Nevada defines equity as fair market value less the relevant liens (NRS 115.005), and West Virginia as fair market value less all liens other than judicial liens (W. Va. Code § 38-9-2).

How much is the homestead exemption in my state?

It varies enormously, and it is published on our state pages rather than here. The statutes in our corpus range from $54,000 in Alaska (Alaska Stat. § 09.38.010) to $605,000 in Nevada (NRS 115.010), and some states structure it differently again — Massachusetts distinguishes a $125,000 automatic exemption from a $1,000,000 declared one (Mass. Gen. Laws ch. 188, § 1).

Can I use the federal homestead exemption instead of my state's?

Only where your state permits it. Section 522(b)(2) makes the federal list in subsection (d) available unless the applicable state law "specifically does not so authorize," and many states have opted out. Section 522(b)(1) also provides that in a joint case, one spouse may not elect the federal list while the other elects state exemptions.

Does it matter that I moved to this state recently?

It can matter a great deal. Section 522(b)(3)(A) applies the exemption law of the place where your domicile was located for the 730 days immediately preceding the filing. If your domicile was not in a single state for that whole period, the statute looks to where it was for the 180 days immediately preceding the 730-day period, or the longer portion of it.

Does a homestead exemption need to be recorded?

That depends on the state. Some make an exemption automatic, some require a declaration, and some do both — Massachusetts provides an automatic homestead in the absence of a valid recorded declaration (Mass. Gen. Laws ch. 188, § 4). Local practice can also add a step: Montana's local rule requires a copy of the recorded homestead declaration to be delivered to the trustee (Mont. LBR 4003-2).

What does filing cost?

The court fees are published and do not vary by state. A Chapter 7 case carries a $245 filing fee (28 U.S.C. § 1930(a)(1)(A), (f)(1)), plus a $78 administrative fee and a $15 trustee surcharge. A Chapter 13 case carries a $235 filing fee (28 U.S.C. § 1930(a)(1)(B)) plus the same $78 administrative fee. Attorney fees are separate and are not set by the court.

Does the automatic stay stop a foreclosure permanently?

No. Filing generally triggers the automatic stay under 11 U.S.C. § 362, but a secured creditor can ask the court for relief from it as to real property. Under § 362(e)(1), the stay terminates thirty days after such a request with respect to the party making it, unless the court orders otherwise after notice and a hearing.

Tier 2 tool

Home Equity & Homestead Explorer

Compare home equity to published homestead amounts.

Home equity in bankruptcy generally means the property's value minus the liens against it, measured as of the petition date. A homestead exemption is then applied to that equity, and only equity above the exemption is potentially reachable. This worksheet organizes those numbers so you can see the comparison; it does not decide any outcome in your case.

Key points

Equity is generally value minus liens, and under 11 U.S.C. § 522(a)(2) "value" means fair market value as of the date the petition is filed.
Filing creates an estate that includes your interests in property, and exemptions are what an individual debtor may take back out of that estate under 11 U.S.C. § 522(b)(1).
Homestead amounts differ enormously by state, and 11 U.S.C. § 522(b)(2) lets a state bar its residents from using the federal list entirely.
A mortgage lien can survive a discharge even when the underlying debt is discharged, so the worksheet's equity figure is not a statement about keeping the house.
Two limits in 11 U.S.C. § 522 can change the picture: the 730-day domicile rule in § 522(b)(3)(A) and the cap on recently acquired homestead value in § 522(p).

If you own a home and you are thinking about bankruptcy, the question underneath every other question is usually the same one: what happens to the house. This worksheet does the arithmetic that question depends on — what the home is worth, what is owed against it, and how a homestead exemption is applied to the difference. It is a way of seeing the numbers clearly, not a determination about your case.

What does this worksheet actually compare?

The worksheet compares three numbers. First, the value of the home. Second, the total of the liens recorded against it — the mortgage, any second mortgage or home equity line, and any other secured claim. Third, the homestead exemption available where you live.

Subtracting the liens from the value gives equity. Several states define it in almost exactly those words: Nevada law says equity is the fair market value less the liens excepted from the exemption (NRS 115.005), and West Virginia defines "value" as fair market value less all liens other than judicial liens (W. Va. Code § 38-9-2).

The worksheet then sets the exemption against that equity. If the exemption is larger, there is no non-exempt equity to display. If the equity is larger, the difference is shown as the portion an exemption would not cover. That difference is a starting point for a conversation, not a conclusion.

Home value — what the property would sell for, not what you paid or what you owe
Liens — mortgage balances, home equity lines, and other claims secured by the property
Equity — value minus liens
Homestead exemption — the amount your state (or the federal list, where available) applies to that equity

What does the law actually say about equity and exemptions?

Three provisions do most of the work. Under 11 U.S.C. § 541, filing creates an estate, and the legislative history is blunt about the consequence: once the estate is created, no interests in property of the estate remain in the debtor. Exemptions are how property comes back out.

Section 522(b)(1) provides that, notwithstanding § 541, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) — the federal list in subsection (d) — or, in the alternative, paragraph (3), which points to state and other federal law.

Timing matters throughout. Section 522(a)(2) defines "value" as fair market value as of the date of the filing of the petition. Alabama states the same principle for its own exemptions: for a case filed under title 11, the amount of the homestead exemption is governed by the law in effect as of the date the bankruptcy petition is filed (Ala. Code § 6-10-1(b)).

11 U.S.C. § 541 — filing creates the estate
11 U.S.C. § 522(b)(1) — an individual debtor may exempt property from that estate
11 U.S.C. § 522(a)(2) — "value" is measured as of the petition date

Which homestead exemption applies to you?

That depends on your state, and the range is wide. The statutes in our corpus run from $54,000 in Alaska (Alaska Stat. § 09.38.010) to $605,000 in Nevada (NRS 115.010) — a difference of more than ten times, for the same house and the same facts.

The federal list is not always an option. Section 522(b)(2) makes the federal exemptions available "unless the State law that is applicable to the debtor under paragraph (3)(A) specifically does not so authorize." California is an example of a state that channels the choice through its own statute: Cal. Civ. Proc. Code § 703.140 lets a debtor elect the subdivision (b) list in lieu of the other California exemptions, but not both.

We publish state figures on the state pages rather than restating them here, because they change and because getting one wrong is worse than not stating it.

Homestead exemption structures vary in kind, not just in amount
Approach	Example in the corpus
A single statewide amount	Alaska Stat. § 09.38.010 sets a homestead exemption not exceeding $54,000
Automatic versus declared	Mass. Gen. Laws ch. 188, § 1 defines a $125,000 automatic exemption and a $1,000,000 declared exemption
Annual inflation adjustment	A.R.S. § 33-1101(D) adjusts the Arizona homestead each January 1 by the increase in the cost of living
Different amount for farmland	Minn. Stat. § 510.02 sets $510,000, or $1,275,000 where the homestead is used primarily for agricultural purposes
A recording or filing step	Mont. LBR 4003-2 requires a copy of the recorded homestead declaration to be delivered to the trustee

How should you read the result?

Read it as a comparison, not a verdict. The worksheet is showing you the relationship between three inputs you supplied and one published figure. Change any input and the picture changes.

If the exemption exceeds the equity, that is the situation many homeowners are in, and it is the reason a home is often not the obstacle people expect it to be. If the equity exceeds the exemption, the gap is what a trustee and your attorney would be looking at — and even then, the existence of a gap is the beginning of the analysis, not the end of it.

Treat every input as an estimate until it is documented. Official Form 106A/B asks for the current value of the entire property and the current value of the portion you own, and it instructs filers not to deduct secured claims or exemptions on that schedule (Bankr. M.D. La. filing packet — Ch7_Vol_Petition_ Package-2026.pdf). The schedules keep value and liens separate for a reason: they are separately provable facts.

A comfortable margin on the worksheet can disappear if the home appraises higher than you assumed
A joint case, co-ownership, or a tenancy by the entirety changes whose interest is being measured
An unrecorded assumption about your lien balance is the most common source of a wrong result

What does the result not tell you?

It does not tell you whether you can keep the house. Liens are a separate question from equity. Official bankruptcy guidance is explicit that liens on property may still be enforced after discharge — a creditor may have the right to foreclose a home mortgage even after other debts are discharged (Bankr. E.D. La. official guidance — Chapter 7 Form Packet). A worksheet showing no non-exempt equity says nothing about whether a mortgage is current.

It does not account for the domicile rule. Under § 522(b)(3)(A), the applicable state exemptions are those of the place where the debtor's domicile was located for the 730 days immediately preceding the filing, with a further look-back if domicile was not in a single state for that period. A recent move can mean a different state's homestead applies than the one you live in.

It does not apply § 522(p), which caps the exemption in homestead value acquired within a defined period before filing. And it does not weigh anything about your income, your debts, or which chapter fits.

Not an eligibility determination, and not a chapter recommendation
Does not evaluate mortgage arrears, foreclosure timing, or reaffirmation
Does not apply the § 522(b)(3)(A) domicile rule or the § 522(p) cap
Does not account for judicial liens that might be addressed under § 522(f)

How does this fit with the automatic stay?

Many people reach this worksheet because a foreclosure is moving. The automatic stay under 11 U.S.C. § 362 operates on that separately from anything in this calculation, and it is not permanent by design.

Section 362 sets out how a secured creditor asks the court for relief from the stay as to real property, and § 362(e)(1) provides that thirty days after such a request the stay terminates with respect to the requesting party unless the court, after notice and a hearing, orders it continued. The statute also addresses repeat filings affecting the same real property, including orders that can bind later cases filed within two years.

So the equity picture and the stay picture are two different timelines. Equity is measured once, as of the petition date. The stay is a live procedural matter that a creditor can move against from the first weeks of the case.

The stay is generally triggered by filing, not by the numbers on this worksheet
A secured creditor can seek relief from it as to real property
Under § 362(e)(1), the stay can terminate 30 days after such a request absent a court order continuing it

What should you do next?

Get the two inputs you control onto solid ground. Pull the current payoff statement for every lien against the home rather than working from the balance you remember, and form a defensible view of the property's value. Those two documents do more to change the result than anything else on the page.

Then look at the whole picture rather than the house alone. Filing fees are published and fixed: a Chapter 7 case carries a $245 filing fee (28 U.S.C. § 1930(a)(1)(A), (f)(1)) plus a $78 administrative fee and a $15 trustee surcharge (Bankruptcy Court Miscellaneous Fee Schedule, Items 8 and 9). A Chapter 13 case carries a $235 filing fee (28 U.S.C. § 1930(a)(1)(B)) plus a $78 administrative fee.

Official guidance also states plainly that you should have an attorney review your decision to file and the choice of chapter (Bankr. E.D. La. official guidance — Chapter 7 Form Packet). Building a roadmap here is a reasonable next step toward that conversation.

Request written payoff figures for every lien recorded against the property
Document how you arrived at the value — the schedules will ask for it
Confirm where you were domiciled during the 730 days before you would file
Bring the worksheet result to a local bankruptcy attorney rather than acting on it

Frequently asked questions

Will I lose my house if I file Chapter 7?: There is no general answer, because the question turns on your equity, your state's homestead exemption, and whether the mortgage is current. Under 11 U.S.C. § 541 filing creates an estate that includes your property interests, and § 522(b)(1) lets an individual debtor exempt property back out of it. Official court guidance is explicit that a lender may still have the right to foreclose a mortgage even after a discharge.
How is equity calculated for bankruptcy purposes?: Generally, the property's value minus the liens against it. Section 522(a)(2) defines "value" as fair market value as of the date the petition is filed, so the measuring date is fixed by statute rather than by when you started the process. Several state statutes use the same structure — Nevada defines equity as fair market value less the relevant liens (NRS 115.005), and West Virginia as fair market value less all liens other than judicial liens (W. Va. Code § 38-9-2).
How much is the homestead exemption in my state?: It varies enormously, and it is published on our state pages rather than here. The statutes in our corpus range from $54,000 in Alaska (Alaska Stat. § 09.38.010) to $605,000 in Nevada (NRS 115.010), and some states structure it differently again — Massachusetts distinguishes a $125,000 automatic exemption from a $1,000,000 declared one (Mass. Gen. Laws ch. 188, § 1).
Can I use the federal homestead exemption instead of my state's?: Only where your state permits it. Section 522(b)(2) makes the federal list in subsection (d) available unless the applicable state law "specifically does not so authorize," and many states have opted out. Section 522(b)(1) also provides that in a joint case, one spouse may not elect the federal list while the other elects state exemptions.
Does it matter that I moved to this state recently?: It can matter a great deal. Section 522(b)(3)(A) applies the exemption law of the place where your domicile was located for the 730 days immediately preceding the filing. If your domicile was not in a single state for that whole period, the statute looks to where it was for the 180 days immediately preceding the 730-day period, or the longer portion of it.
Does a homestead exemption need to be recorded?: That depends on the state. Some make an exemption automatic, some require a declaration, and some do both — Massachusetts provides an automatic homestead in the absence of a valid recorded declaration (Mass. Gen. Laws ch. 188, § 4). Local practice can also add a step: Montana's local rule requires a copy of the recorded homestead declaration to be delivered to the trustee (Mont. LBR 4003-2).
What does filing cost?: The court fees are published and do not vary by state. A Chapter 7 case carries a $245 filing fee (28 U.S.C. § 1930(a)(1)(A), (f)(1)), plus a $78 administrative fee and a $15 trustee surcharge. A Chapter 13 case carries a $235 filing fee (28 U.S.C. § 1930(a)(1)(B)) plus the same $78 administrative fee. Attorney fees are separate and are not set by the court.
Does the automatic stay stop a foreclosure permanently?: No. Filing generally triggers the automatic stay under 11 U.S.C. § 362, but a secured creditor can ask the court for relief from it as to real property. Under § 362(e)(1), the stay terminates thirty days after such a request with respect to the party making it, unless the court orders otherwise after notice and a hearing.

Sources

11 U.S.C. § 522 — Exemptions · official source
11 U.S.C. § 541 — Property of the estate · official source
11 U.S.C. § 362 — Automatic stay · official source
Alaska Stat. § 09.38.010 — Homestead exemption
NRS 115.005 — Definitions
NRS 115.010 — Exemption from sale on execution and from process of court
W. Va. Code § 38-9-2 — Definitions
Mass. Gen. Laws ch. 188, § 1 — Definitions
Mass. Gen. Laws ch. 188, § 4 — Automatic homestead exemption in absence of a valid recorded declaration
A.R.S. § 33-1101 — Homestead exemptions; annual adjustment
Minn. Stat. § 510.02 — Area and value; how limited
Ala. Code § 6-10-1 — Law governing exemptions and claims
Cal. Civ. Proc. Code § 703.140
Mont. LBR 4003-2 — Homestead Exemptions
Bankr. E.D. La. official guidance — Chapter 7 Form Packet
Bankr. M.D. La. filing packet — Ch7_Vol_Petition_ Package-2026.pdf
28 U.S.C. § 1930(a)(1)(A), (f)(1) · official source
28 U.S.C. § 1930(a)(1)(B) · official source
Bankruptcy Court Miscellaneous Fee Schedule, Item 8
Bankruptcy Court Miscellaneous Fee Schedule, Item 9

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Last reviewed July 31, 2026 · Sources verified July 31, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

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