There is nothing preventing you from keeping a house after you have stopped foreclosure by filing a Chapter 7.  However, as a practical matter, most mortgage companies will not “reaffirm” your mortgage debt if you are behind with your mortgage payments.

Chapter 7 is a liquidation type of bankruptcy, rather than a personal financial reorganization like Chapter 13.  If you are behind on your mortgage payments when you start your case, there is no court  payment plan in Chapter 7 that will allow you to catch up.  However, if you file Chapter 7 to stop a foreclosure so that you will have time to sell your house or refinance your mortgage, Chapter 7 can be a useful tool.

Generally, you would not use Chapter 7 to save your house long term.  Chapter 13 is more appropriate to accomplish that purpose.  However, Chapter 7 can be a very powerful tool that will allow you to stop a foreclosure, walk away from your house and mortgages with no financial penalty and to get rid of your credit card and unsecured debts as well.

As is the case with any type of bankruptcy relief, you should seek professional help in the form of an experienced bankruptcy law firm like Clark & Washington.  You are always welcome to call our office for a friendly, free consultation.  Our phone number is 770-488-9300.