Can I include an FHA loan in chapter 7?

An FHA loan is a government-backed mortgage loan. in other words, it is a loan that you took from a mortgage lender that the Federal Housing Authority guaranteed. When you file for chapter 7, you cannot just have your FHA loan dishcarged because it is a mortgage loan. You will either have to choose between surrendering the asset (the house) or re-affirming and continuing to pay the mortgage debt. 

Unlike credit cards or a car loan, the lender who gave you your mortgage has some significant protection if you don't pay. The home that they lent you the money to buy act as collateral and is a tangible asset that the lender may repossess and sell to get their money back if you don't pay them what you promised. This means that unlike credit card debts, chapter 7 bankruptcy is not just going to get rid of your FHA debt. If they did, you would essentially be getting the house for free.

During a chapter 7, you will usually have a choice to make- if you can't pay back your mortgage and won't be able to make payments, then you can decide to give up the house. If you do want to keep your home and think you'll be able to handle the payments (especially after most or all of your other debt is wiped out in the bankruptcy), then you can reaffirm the mortgage. This means that you promise the lender you are going to pay despite the bankruptcy. If you choose this option, you keep your home- but of course, have to begin paying your bills.

For guidance and advice on whether you should try to keep your home or not, and for other assistance in the bankruptcy process, consult with a bankruptcy lawyer when you begin to contemplate bankruptcy.