No matter what chapter you file under you can keep your home. However there are different rules in chapter 7 and chapter 13 bankruptcy.

If you file a chapter 7 bankruptcy you can elect to keep your home provided you do not have too much equity in the home. For the limit of equity you can have click here. If you file under chapter 13 bankruptcy the exemption limit for equity in the house applies differently than in a chapter 7 case and you may be able to keep equity over the exemption limit if you can make up for it in your repayment plan.If you are behind in our mortgage payments or you would like to remove the second mortgage you should file under chapter 13 bankruptcy. The missed payments can be repaid as part of the repayment plan and as such avoids foreclosure.