If you kept your house throughout the bankruptcy process, you are free to keep your home after the bankruptcy – as long as you continue to pay the mortgage. It may be that after you are free of all the rest of your debt you will be able to afford the mortgage payments easily.

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

Most Chapter 7 bankruptcy filers can keep a home if they’re current on their mortgage payments and they don’t have much equity. However, it’s likely that a debtor will lose the home in a Chapter 7 bankruptcy if there’s significant equity that the trustee can use to pay creditors.

When is income tax debt dischargeable in Chapter 7?

If the income tax debt meets all five of these rules, the tax debt is dischargeable in Chapter 7 bankruptcies: The due date for filing the tax return in question was at least three years ago. The tax return was filed at least two years ago. The tax assessment is at least 240 days old. The tax return was not fraudulent.

What happens if my house is in Chapter 7 bankruptcy?

Your mortgage balance is more than what the house is worth. If your mortgage balance is substantially greater than the value of your home, it may not be worth keeping. Many debtors decide that they can move to a comparable place and pay less. If you are upside down on your house, Chapter 7 provides a simple way to walk away from it.

When does a tax debt have to be included in bankruptcy?

The tax debt must be related to a tax return that was due at least three years before the taxpayer files for bankruptcy. The due date includes any extensions, so if you request and receive an extension for your 2017 return, making it due in October 2018, you would not be able to include it in a bankruptcy until at least October of 2021.

Can you get a tax refund if you file bankruptcy?

While you can receive tax refunds while under bankruptcy, the refunds are more than likely to be redirected to your tax debts. If you are able to receive dischargeable tax debts, they must additionally meet five other criteria. Tax debts are associated with a particular tax return and tax year.