Will I lose my house if I declare bankruptcy?

It depends on the amount of equity available on your house. For instance, if your home has a market value of $100,000 and you have a mortgage of $90,000, then the $10,000 difference is considered an asset by your creditors. The trustee would therefore have to sell the property, or you may also pay the different in order to keep your home. If you co-own the residence with your spouse, you will have to pay half of the equity, in this case, $5,000.