Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Is your home in a municipality or in the country?
How many acres is it on?
Given the information you provided, you would be able to keep your home if you file a Bankruptcy. Additionally, you are allowed to keep one car for each adult member of the family.
There is no tax liability for debts that are discharged in a Bankruptcy (these are not considered to be a 1099-C debt forgiveness).