Can someone file a bankruptcy and protect their home?

Often times when people come into our office they have credit card debt, medical bills, things like that they just can’t pay. They say I own a home can I do a chapter 7 bankruptcy? The answer is maybe, what we have to do is look at the value of your home and how much equity it has. As a rule of thumb the trustee is going to take the market value of your home, subtract from that ten percent, then subtract the mortgage balance. After all that you get a twenty-five thousand dollar homestead exemption. If there is no equity after that formula is done you can do a chapter 7 and not have to worry about your home being sold. Remember the trustee has the power to sell your home if there is equity after exemptions.