Initially, bankruptcy works to do everything in its power to keep you in your home. If any foreclosures are in process, filing for bankruptcy enacts an automatic stay that will stop them immediately. This means you can rest assured that, at least at the beginning, your home is safely in your hands. But what about later? If you are filing for Chapter 7 bankruptcy, your assets go into the hands of the courts, and a trustee is appointed to delegate how they are distributed.
If your home is on the list for possible distribution, even if the bankruptcy initially prevented it from being foreclosed upon, it could be taken as a way to pay your debts. That said, there are multiple ways to safeguard against the sale of your home by a trustee and an accomplished Phoenix bankruptcy attorney can help you identify those ways. Moreover, it is highly possible that if your home had already entered foreclosure or was nearly doing so, a continual default on your payments would eventually result in the loss of your home regardless of whether a bankruptcy was in place.