QUESTION
If I am in the process of filing chapter 7, do I continue to pay on my mortgage in the meantime?
Asked on Mar 28th, 2013 on Bankruptcy - Florida
More details to this question:
I am 3 going on 4 months behind on my mortgage. Do I need to continue to pay this during chapter 7?
15 ANSWERS
If you do not want to keep the house, you don't have to continue making payments and will get rid of the mortgage in the Chapter 7 bankruptcy.
Answered on Apr 03rd, 2013 at 8:41 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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It is likely that your personal obligation to repay the mortgage will be discharged in the Chapter 7 bankruptcy. However, the bankruptcy will not eliminate the mortgage lien on your house, and the mortgage company will foreclose if they are not paid. Whether you "need to" continue paying the mortgage is more of a question of whether you wish to stay in the house-if you want to keep the house, you need to keep paying and reaffirm the debt in the bankruptcy case.
Answered on Apr 01st, 2013 at 7:55 PM
David M. Axinn
This is a question that you should discuss with your bankruptcy attorney. I will say that the answer will depend, in part, on whether you are trying to keep the property, or intend to let it go.
Answered on Apr 01st, 2013 at 7:55 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Do you want to keep the house? If not, no. If yes, talk to your attorney.
Answered on Apr 01st, 2013 at 1:24 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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This is fine.
Answered on Apr 01st, 2013 at 12:56 AM
2 Awards
If you do not want to keep your home you do not need to keep paying on the mortgage. However, if you want to keep it through the bankruptcy then you must continue to pay or work out a loan modification with your lender.
Answered on Apr 01st, 2013 at 12:42 AM
David John Tybor
It depends on whether you want to keep your home or not. Oftentimes, our clients who file a chapter 7 are able to work out a modification or loan workout or loan mitigation during the bankruptcy process. In order to keep the home, you have to be current. What did you put on your schedule 8, did you indicate that you are surrendering the home? Or do you want to keep the home and get a reaffirmation agreement from the bank. I would speak to an attorney who will give a free consultation to get the factual information and present to you the options that you have.
Answered on Mar 29th, 2013 at 2:47 PM
bankruptcy Attorney serving Meriden, CT
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Law Office of William E. Carter, LLC
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If you intend on keeping your house you should continue to make mortgage payments if you can of ford to make the monthly payment. There may be other factors that affect whether you want to keep paying the mortgage.
Answered on Mar 29th, 2013 at 2:47 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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That depends on whether you are surrendering the house or not.
Answered on Mar 29th, 2013 at 2:46 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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If you want to keep the house, making the payments is necessary. However, when you are 3-4 months behind, the mortgage company will require you to catch it all up or face foreclosure. If you want to use the bankruptcy, to save your house from foreclosure, you should probably be filing a Chapter 13. Talk to your attorney about this.
Answered on Mar 29th, 2013 at 2:46 PM
If you are planning on "surrendering" your house via your Chapter 7 you should not make any further payments. However, if you plan on keeping the house (and figuring out a way to get caught up on your mortgage) you should continue making your mortgage payments.
Answered on Mar 29th, 2013 at 2:44 PM
Deborah F. Bowinski
You should ask your attorney. If you don't have an attorney, then the answer depends upon she ther you wish to jeopardize the home and try to catch up or modify your loan, or whether you intend to surrender the property. If it is your intent to surrender I would not make any more payments. In that instance, though, be careful in how you complete your means test and your Schedule J.
Answered on Mar 29th, 2013 at 2:44 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Yes, if you want to keep the house. If you have any HOA, pay them even if you do not want to keep the house. Keep paying until the foreclosure completes. Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Mar 29th, 2013 at 2:43 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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It depends. If you want to keep your house, you will need to get current at some point. If you are going to surrender the property and move on, you should keep the money, as you will most likely need it in the future. That was the short answer. These things tend to be more complex than that, so you should seek some advice that considers the totality of your situation.
Answered on Mar 29th, 2013 at 2:42 PM
Only if you want to keep your house.
Answered on Mar 29th, 2013 at 2:42 PM