Home prices in the Sacramento California region rose by about 6 percent during the last 12 months.  The median home price in the Sacramento region sold for $320,000 in May, 2015 according to Zillow.com.

Higher home prices means more equity in your home if you are not underwater on your mortgage.  If you have overwhelming debts or falling behind on payments, the increasing equity in your home can pushed you out of Chapter 7 Bankruptcy and into a payment plan to your creditor under Chapter 13 Bankruptcy if you do not want the Chapter 7 Trustee to liquidate or sale your home.  Your payment plan under Chapter 13 Bankruptcy will depend on the amount of equity that is in excess of the California exemptions among other factors.  The higher home equity could mean higher Chapter 13 Bankruptcy plan payment.  Remember, Chapter 13 Bankruptcy does not necessarily mean that you have to repay 100% of your debt.  How much of your debt you must repay depends on the value of your assets in excess of what is covered under the California exemptions and your income offset by reasonable and necessary expenses.

It does not appear that homes prices will decrease anytime soon but if you are falling behind in your payments, you might want to consult a Bankruptcy Attorney soon about your options under bankruptcy law as well as bankruptcy alternatives.  Don't delay.  It can only make your situation worse and limit your options.