If you qualify for a Chapter 7 bankruptcy (which wipes out the majority of most debts), then you can keep your home if you are current on the monthly payments and you do not have excess equity in your home. Currently the State of Ohio allows each owner of a home to keep $, of equity in their house. How Many Kept Their House in Chapter 7 Most readers didn't lose their home in Chapter 7 bankruptcy.. If you file for Chapter 7 bankruptcy—the kind that gets rid of debt most quickly—you can keep your house under two conditions: You’re current with your mortgage payments when you file (or you’ve recently gotten current through a loan modification), and the laws in your state allow you. What happens if you do lose your house after bankruptcy? If you’re unable to find someone to buy your interest in the property then the OR can apply to court for an order for sale. However, the courts can postpone an order for sale for up to 12 months to allow time for you to move out of the property.