Will I lose my home? ­ Unlike the image of bankruptcy from the 1930's, the current system is not designed to take everything away from you.  You will not be living on the street wearing a barrel.  Under Federal law, an individual is allowed to keep at least $18,450.00 in equity in his or her residence.  This is measured by taking the fair market value of the home and subtracting the balances of all outstanding mortgages.   Under Connecticut law beginning in October 1993, this amount is increased to $75,000.00 per owner.  These amounts are doubled in the case of a couple owning property together.