QUESTION
Can I include my home in Chapter 7 and then not reaffirm the mortgage?
Asked on Jun 22nd, 2013 on Bankruptcy - Maine
More details to this question:
Can I have my home in which I have about $25k in equity in Chapter 7 so that the loan is removed and then not reaffirm the mortgage? I am current and intend to continue paying on my mortgage. I realize that if I stop paying that the mortgage company can foreclose because they will still have a lien on my home. I just want to protect myself in case the value of my home drops so that I do not have to worry about being responsible for excess losses if I should ever have to go through foreclosure. I am on social security disability.
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
Reviews not shown
3 Awards
Yes. The situation you describe is what 99% of people who file bankruptcy do. Of course, if you have $25,000 in equity and do not have sufficient exemptions to protect that equity, the Trustee may sell your home in a Chapter 7 case.
There is no requirement to reaffirm a mortgage in a bankruptcy case. It is not necessary.
See more about what happens to mortgage debts after bankruptcy.
Mark Markus has been practicing exclusively bankruptcy law in California since 1991. He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization, AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.
Answered on Jun 23rd, 2013 at 9:43 PM