[header] How to obtain general property exemptions in bankruptcy [title] Calculate the equity in your home. [step] Many states will allow you to exempt a certain amount of equity in your home. To figure out the equity in your house, you should subtract the mortgage from the current market value. 
You will have equity if your house is worth more than you owe on it. [substeps] The bankruptcy trustee can actually seize your house and sell it if you have equity in your home.