Forclosure after Chapter 7 Bankruptcy

The answers your question is no, you will not be liable for any remainder of the mortgage after you receive a chapter 7 bankruptcy discharge. But remember chapter 7 does not allow you to save a home that your behind payments on, thus if you receive a chapter 7 bankruptcy on your home you have eliminated the debt, but the bank still have a collateral interest in your home secured by the mortgage and bankruptcy cannot remove that. So if you have a first mortgage on your house and you file chapter 7 bankruptcy and receive a discharge, unless your mortgages in good standing and all payments are up to date, you will automatically lose the home. In bankruptcy if there's ever collateral securing the debt such as a home or a car, you can discharge the debt but you will always lose the property. Bankruptcy cannot have you discharged debt and still get to keep the property. There are few exceptions, such as stripping a second mortgage when the house is under water and the second mortgage interferes with the Debtors homestead exemption. But this is simply not the case on a first mortgage.   I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147