Filing bankruptcy in New Jersey? The type of bankruptcy you file has a major impact on what happens to your home.\n\n## Chapter 7 — Liquidation\n\n- Your nonexempt assets are sold to pay creditors\n- NJ homestead exemption protects some equity (currently limited)\n- If equity exceeds exemption, the trustee may sell your home\n- Process takes 3-6 months\n- Fresh start — most debts discharged\n\n## Chapter 13 — Reorganization\n\n- You keep your assets and follow a 3-5 year repayment plan\n- You can catch up on missed mortgage payments through the plan\n- Your home is generally protected as long as you keep up with payments\n- Good option if you want to KEEP your home\n\n## When Selling Makes Sense\n\nSometimes selling your home during bankruptcy is the smartest move:\n- You can't afford the mortgage even with restructuring\n- You have significant equity that could pay off debts\n- You want a fresh start in a new location\n- The home is in poor condition and a financial drain\n\nSargent Homes buys houses from homeowners in bankruptcy. We work with your attorney and trustee to ensure a smooth, compliant sale. Call (848) 220-1830.