You are able to keep your home in a chapter 7 bankruptcy case, however, you usually have to enter into a reaffirmation agreement on your home to continue making the payments. When filling out the reaffirmation agreement, you will have to show that you have enough income to afford the payment. A judge will not approve a reaffirmation agreement if the payment is so high that it will create an undue hardship for you.

You can also keep your house in a chapter 13 case, but once again, you will have to show in your chapter 13 plan that you have the ability to make those house payments. A judge will only confirm your chapter 13 plan if he believes it is feasible and you actually have the ability to make the payments.

So in summary, yes, you are able to keep a house in a bankruptcy but the courts will only approve that if in fact it is in your best interest to keep it. If it is more house than you can afford, then bankruptcy is the time to make a fresh start, let the bank take the house back, and find yourself a new place that is more affordable for you.