Not correct. You can be made to sell your house if you have too much equity in it.
WHAT CAN YOU KEEP IN BANKRUPTCY?
•Most people do not lose any of their belongings in bankruptcy. The end goal of bankruptcy is to get you back on your feet financially. Therefore, your basic necessities are protected in bankruptcy, so as to help you re-establish yourself.
•The equity in your home and most of your personal belongings will, in all likelihood, be protected in bankruptcy.
•The exemptions (the bankruptcy law which protects your assets) are very complicated and you should consult an attorney to maximize the protection that you are afforded under Bankruptcy Law.
Some states like Texas and Florida, do not make you sell your ‘homestead’ to pay off debts. No matter how big and expensive a house you have in Florida, even if it is paid off, you can keep it in a bankruptcy.