I have learned that if one file for Chapter 7 bankruptcy, he will lose his house if the amount of equity matches the amount to be paid to the creditors. There is one exception which is homestead exemption and allows you to protect certain amount of equity.
The question is after homestead equity and you still don't have enough in your remainder of the equity, will they still sell your house to pay the creditors. What if one meet the equity after 3 or 5 years after filing the chapter 7 bankrupty, will they sell the house after 3 or 5 years?
Generally speaking, equity and exemptions in a Chapter 7 bankruptcy are determined as of when the case is filed. If the house appreciates 3-5 years after the case is filed, it shouldn't affect the case. That said, you should consult with a bankruptcy attorney in your area to discuss your situation, so you can get advice tailored specifically to your case. No one from the internet can tell you much more without knowing all the relevant facts from your situation. Don't try to file bankruptcy on your own - pro se bankruptcy cases have a much higher failure rate than those where the debtor is represented by an attorney.
Disclaimer: As always, you get what you pay for. Be sure to talk to a qualified attorney in your area about your specific situation before you choose to rely on any information you get from internet discussion boards such as this one. I am a Michigan attorney and I do not give advice about state law other than Michigan law. If you live outside of Michigan the information presented here is based on federal law and general legal principles, and should not be construed as advice specific to your state's law.
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