QUESTION
My house is in mediation right now , can I file Chapter 7?
Asked on Feb 23rd, 2012 on Bankruptcy - Alabama
More details to this question:
My house is in mediation right now , can I file Chapter 7? I have not paid my house payment in 8 months. Also, I'll be getting my taxes done soon and would they take that from me?
7 ANSWERS
Yes, you may qualify for Chapter 13 and be able to play the arrearage over the course of a Chapter 13 repayment plan.
Answered on Feb 27th, 2012 at 12:55 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Mediation does not prevent one from filing bankruptcy.
Answered on Feb 27th, 2012 at 9:37 AM
Insurance Defense Attorney serving Jackson, MI
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Dungan, Lady & Dunga, PLLC
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I would try and get your loan modification in place BEFORE you file if at all possible. If you there is some pressing reason why you must file chapter 7 now, it is still possible to get a loan modification, but it becomes a little more difficult. Make sure you do not reaffirm the mortgage unless you do a loan modification with agreeable terms. Yes your tax refund may be protected, provided you have sufficient exemptions to cover the amount of the return. Unless the mortgage company has an executed judgment against you, they also could not take your return.
Answered on Feb 24th, 2012 at 9:10 AM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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Yes. Most Chapter 7's don't affect secured debts; you surrender it or reaffirm it. If you exempt the tax refund, the trustee will not take if from you.
Answered on Feb 24th, 2012 at 9:02 AM
Difficult question, no clear cut answer. The Home Affordable Modification Program (HAMP) specifically allowed homeowners to continue with mortgage modifications even though currently in Chapter 7. However, the rules vary with every modification program and mortgage lender- some may not care at all if you filed Chapter 7 and will continue to work with you through the modification process, others may immediately halt any talking with you even until your case is discharged (which could be many months). Regarding tax refunds, you most likely can exempt them per 11 U.S.C. 522(d)(5), depending on how many other non-household good items that you have.
Answered on Feb 23rd, 2012 at 7:09 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Mediation or Modification? Whether you can keep an income tax refund depends on what other property you want to keep and its amount.
Answered on Feb 23rd, 2012 at 6:58 PM
Domestic Relations Attorney serving Huntsville, AL
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Ferguson & Ferguson
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If you are attempting to modify your present mortgage then it would better not to file a bankruptcy right now. However if your modification goes through then you may qualify for a chapter 7 bankruptcy to discharge your other debts. If your modification is denied however then you may file a chapter 13 to catch your mortgage payments up.
Answered on Feb 23rd, 2012 at 6:43 PM