This is completely false!
One of the main purposes of filing bankruptcy is to protect your most important assets, like your home. And if you are current on your payments, you can rest assured that your home’s equity will be protected from creditors as well. At a minimum, North Carolina individuals can protect $35,000 worth of equity in their primary residence (or $70,000 for married couples) – this protected equity amount is unlimited for Florida individuals and couples.
If you are behind on your mortgage payments, there are options under Chapter 13 bankruptcy to catch up on your payments and keep your home, even if it has gone into foreclosure.