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.
[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.