QUESTION
What can I do if I filed bankruptcy and have been discharged and now they are trying to foreclose on my house?
Asked on Jan 24th, 2013 on Bankruptcy - Florida
More details to this question:
I filed bankruptcy but never signed re affirm papers but allowed to stay in the home. After discharge by the trustee, I started getting foreclosure papers and today received court papers. I was told everything would be current but this is not the case. What do I do?
10 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The mortgage is "current" as long as you have paid on it. If you did not then you are delinquent and the lender has a right to foreclose.
Answered on Jan 28th, 2013 at 8:31 AM
The trustee may start the foreclosure process again. You should either seek a loan modification or short sale as soon as possible.
Answered on Jan 28th, 2013 at 8:31 AM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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If you filed a Chapter 7, you are required to stay current on payments. The Chapter 7 discharges your personal liability but does not make you current on payments. If you are not current, you need to get current or work something out with the mortgage company. If you were current before you filed and stayed current, then you just need to prove you were current to prevent the foreclosure, If you filed a 13 and used the payment plan to get current, you should have a order declaring your mortgage current. You can use this order to show that the foreclosure should be denied.
Answered on Jan 28th, 2013 at 8:30 AM
Deborah F. Bowinski
If you have been making your mortgage payments then you need to request a payment history from your lender to determine where their records differ from your own. If you have not been making your loan payments then you will have to find a way to cure the arrearage before the foreclosure sale date. I suggest you contact your bankruptcy attorney to discuss your situation.
Answered on Jan 28th, 2013 at 8:30 AM
Whoever told you that bankruptcy would give you a free house shouldn't have a license to practice law. Filing Chapter 7 bankruptcy can only temporarily protect you from foreclosure. Unless you make current mortgage payments and stay current or make a deal with your mortgage company to resolve the issues of past due payments, the foreclosure can proceed. The bankruptcy eliminated your personal responsiblity to pay the mortgage debt, but the mortgage company still has the right to foreclose as they have a lien against your title. Hope you didn't make this mistake with your car loan too.
Answered on Jan 25th, 2013 at 2:02 PM
What kind of bankruptcy were you in? A 7 would have no effect on your arrearages on the mortgage. A 13 should have brought you current. If you did a 13 (or a 7) contact your attorney and let him know what is going on. Since they are foreclosing, it is good you did not reaffirm. All they can get from you is the home. They can't come after you for the shortfall.
Answered on Jan 25th, 2013 at 2:02 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
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They can still foreclose on the house, they can not ask YOU personally for the money, but the can still foreclose.
Answered on Jan 25th, 2013 at 9:56 AM
If you were not current at the time you filed the bankruptcy or if you defaulted after the bankruptcy, the lender can foreclose on you. However, if you did not sign a reaffirmation agreement, the lender can only obtain a judgment that will allow it to sale the property but cannot collect from you personally because your personal liability was discharged. Please keep in mind that each case is different, therefore it is recommended that you consult with an attorney.
Answered on Jan 25th, 2013 at 9:55 AM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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You can defend against the discharge but you can also file a Chapter 13 bankruptcy to repay the mortgage arrears. The only difference is that you cannot get a discharge in the 13 but there should not be any unsecured debt. You also will not get the benefit of the zero percent interest option in the 13.
Answered on Jan 25th, 2013 at 9:55 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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I am assuming you filed chapter 7. While the debt you owed the mortgagee was discharged, the mortgagee still retains a security interest in the property for the amount due to it under the terms of the loan and can foreclose. By having a discharge of this debt, they cannot look to you for any deficiency if the property sells for less than what is owed.
Answered on Jan 25th, 2013 at 8:04 AM