QUESTION
Can I file bankruptcy if I have real estate debt?
Asked on Aug 18th, 2011 on Bankruptcy - California
More details to this question:
I own real estate with mortgages and I am running out of money to pay my expenses.
15 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes.
Answered on Jun 09th, 2013 at 8:46 PM
Bankruptcy can be used to eliminate or reorganize debt.
Answered on Aug 20th, 2011 at 2:45 PM
Trusts and Estates Attorney serving Jacksonville, FL
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Law Office of David M. Goldman PLLC
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Yes you can, it would depend on the amount of debt and income you have as to what options you had.
Answered on Aug 20th, 2011 at 2:01 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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This is probably one of the most common reasons today for filing bankruptcy. However, determining whether to file and, if so, under which chapter of the Bankruptcy Code will require a review of your assets and liabilities, and income and expenses.
Answered on Aug 19th, 2011 at 2:06 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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You can file chapter 7 or chapter 13 if you have real estate debt. If you cannot afford the payments chapter 7 is better than a chapter 13, which is a payment plan for your debts.
Answered on Aug 19th, 2011 at 12:39 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Mortgages are secured debts. A mortgage or deed of trust is a lien. Those liens are not removal in Chapter 7. A junior lien on a personal residence where the value of the property is less than the balance of the senior lien can be stripped off the property title in Chapter 13. If you want to keep the house the mortgages or deeds of trust that you cannot strip off in Chapter 13 must be paid. Otherwise, the bank can foreclose after asking the court permission (relief of stay). You certainly need a lawyer to advise you and handle your case.
Answered on Aug 19th, 2011 at 12:36 PM
Spencer Hale
You can file bankruptcy even if you have real estate debt. If you have a lot of rental properties it could start to get complicated in a hurry. You should discuss your options with an attorney.
Answered on Aug 19th, 2011 at 12:20 PM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Yes. In Ch.7 you can surrender the house and owe nothing more. If you choose this route, stay in the house until you *know* there's a new owner. Keep up HOA fees after filing, and keep liability insurance in place. You could choose to file Ch. 13, in which you pay your usual mortgage plus something more so the arrears are paid off at the end of 5 years. This doesn't sound like the better option for you, though. And when you file please retain a good Bankruptcy lawyer- this will save you in so many ways.
Answered on Aug 19th, 2011 at 11:39 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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Yes you can discharge mortgages on properties you want to surrender and reaffirm mortgages on properties you want to keep.
Answered on Aug 19th, 2011 at 11:30 AM
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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Yes, Bankruptcy will eliminate real estate debt, unless reaffirmed, or you may have the option of continuing to pay the mortgages and keep the real estate.
Answered on Aug 19th, 2011 at 11:24 AM
Glen Edward Ashman
You can file bankruptcy with or without real estate debt. What you file will affect whether you retain, or must pay for the realty, or whether you can discharge or change it. These decisions are why you need an experienced lawyer.
Answered on Aug 19th, 2011 at 11:23 AM
Daniel James Wilson
Yes. Requires careful pre-filing planning.
Answered on Aug 19th, 2011 at 11:17 AM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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Mortgages are generally dischargeable in bankruptcy. Obviously, you will lose the property if the debt is discharged, however it will prevent any further collections efforts on a deficiency.
Answered on Aug 19th, 2011 at 11:15 AM
Yes! Real estate related debt is one of the many reasons people choose to file bankruptcy. Depending on your particular situation through bankruptcy you may be able to strip away unsecured mortgages and keep the property, or surrender the property and avoid any personal liability for the debt. However, depending on state law, you may not be personally liable for the debt in the first place and may not need to file bankruptcy. You should consult with an attorney to learn more about your options.
Answered on Aug 19th, 2011 at 11:07 AM