A common concern is whether or not you can keep your house in bankruptcy. The answer depends on the type of bankruptcy you file, the amount of equity in your home, and whether you can stay current on mortgage payments. In Oklahoma, many homeowners are able to protect their house through bankruptcy with careful planning and the right legal guidance

Oklahoma’s Homestead Exemption

Oklahoma law provides one of the most generous homestead exemptions in the country. This exemption protects your primary residence from being sold to pay creditors in bankruptcy.

In most cases, the homestead exemption in Oklahoma allows you to keep your home regardless of how much equity you have in it, as long as the property does not exceed 160 acres of rural land or 1 acre in a city, town, or village.

It’s important to remember that the exemption does not erase your mortgage. If you are behind on payments, the lender may still foreclose unless you take additional steps through bankruptcy.

Chapter 7 Bankruptcy and Your Home

In Chapter 7 bankruptcy:

• The trustee cannot take your home if it falls within the homestead exemption.
• You must remain current on your mortgage to keep the property. If you are behind, Chapter 7 will not stop foreclosure long-term.
• Chapter 7 may be best if you have significant unsecured debt but can keep up with mortgage payments.

Chapter 13 Bankruptcy and Your Home

In Chapter 13 bankruptcy:

• You can keep your home as long as you make payments under a court-approved repayment plan (usually lasting 3–5 years).
• Chapter 13 allows you to catch up on missed mortgage payments over time while stopping foreclosure.
• This type of bankruptcy is often a good option for homeowners who have fallen behind but want to save their home.

When You Might Lose Your Home

Despite Oklahoma’s homestead protections, you could still lose your home if:

• You cannot make required mortgage payments.
• You have a second mortgage or judgment lien not fully protected by exemptions.
• Fraud or misuse of the homestead exemption is found.

Why Legal Guidance Is Important

Every bankruptcy case is different, and whether you keep your house depends on your finances, debts, and the type of bankruptcy filed. An experienced Oklahoma bankruptcy attorney can:

• Review your eligibility for exemptions.
• Help you decide between Chapter 7 and Chapter 13.
• Protect your home and other assets while discharging or restructuring debt.

Creek County Bankruptcy Lawyers

Filing for bankruptcy doesn’t always mean losing your home. With Oklahoma’s strong homestead exemption and the right strategy, many people successfully protect their house while getting a fresh financial start. If you’re considering bankruptcy, our team at Creek County Attorneys can help you decide if it is right for you. Call us at 918-209-3709 for a free and confidential consultation or ask a legal question here.