QUESTION
Will I be able to keep my home if I got a discharge from my chapter 7 bankruptcy?
Asked on Sep 17th, 2011 on Bankruptcy - California
More details to this question:
If I just received a discharge on a chapter 7 bankruptcy, but I still owe back mortgage payments, even though I've been making a payment every month during the bankruptcy, will I lose my home? or be able to keep it? Will I still owe the back payments?
11 ANSWERS
You do not owe the money, but the lender still has the right to take the property if it is not paid. Since you are behind, you run the risk of foreclosure.
Answered on Oct 05th, 2011 at 11:00 PM
Bankruptcy Chapter 7 Attorney serving San Diego, CA
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Law Office of Asaph Abrams
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The chapter 7 discharge eliminates your personal liability on the mortgage, but it does not compel the bank to deduct the arrearage from your payoff of the lien. You may file a chapter 13 in order to catch up on the deficiency or alternatively work directly with the bank to modify the mortgage or maybe attempt to tack on the arrearage to the tail-end of the loan. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers.
Answered on Sep 26th, 2011 at 7:15 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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It depends whether you reaffirmed the mortgage on your house. Generally you must keep current on your mortgage to prevent foreclosure.
Answered on Sep 20th, 2011 at 2:48 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Filing bankruptcy means you no longer have personal liability for payment of your home, if you give it up. Since the lender retains its security interest in spite of bankruptcy you must remain current with your loan. If you don't pay for your home the lender will foreclose.
Answered on Sep 20th, 2011 at 1:31 PM
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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In Colorado, foreclosure after chapter 7 bankruptcy is likely if you are not current on your mortgage payments. For debtors who want to keep their homes in chapter 7 bankruptcy, it is important to be current on the mortgage payments at the time of the bankruptcy filing and keeping current thereafter. The fact that you kept current on your mortgage payments during the bankruptcy didn't get you out of default status, since you are still in default the lender may foreclose on its lien [even though the underlying debt has been discharged (absent reaffirmation) since the underlying lien survives the bankruptcy generally]. For debtors who want to keep their homes and are behind in their payments, chapter 13 bankruptcies gives the debtor the option of curing the default over time in the chapter 13 payment plan. If you have reaffirmed the 1st or 2nd mortgages, you should consider revoking the reaffirmation agreement(s) if not too late (it is too late if 60 days have passed since it was filed with the court).
Answered on Sep 20th, 2011 at 1:25 PM
Daniel James Wilson
If you want to keep the house you must get current with the mortgage. Lender may allow you to set up a plan to get current.
Answered on Sep 20th, 2011 at 9:42 AM
If you keep making your payments, you should be able to keep the home after bankruptcy. It's between you and then bank - and if you don't keep it and didn't sign a reaffirmation agreement, you can avoid personal liability on the mortgage.
Answered on Sep 20th, 2011 at 8:23 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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The best answer to this question is how long will the mortgagee tolerate your default. Your chapter 7 has nothing to do with the decision. Most likely one day the mortgagee will make a business judgment to foreclose. You should then see if a chapter 13 can stop that.
Answered on Sep 20th, 2011 at 8:20 AM
Glen Edward Ashman
Hopefully you did not file pro se. Your lawyer will already have figured out the answer based on your paperwork, so ask him.
Answered on Sep 20th, 2011 at 8:00 AM
Immigration Attorney serving Salinas, CA
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Law Office of Magnolia Zarraga
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You cannot keep your home unless you pay back all the arrears (months behind) on your house. Alternatively you can ask the lender for a modification which can extend the term of your loan and bring you current. Absent lender agreement or you catching up with your payments, the lender has the right to commence foreclosure on your home or continue foreclosure if it had already began prior to you filing the bankruptcy. How much time you may have in your home depends on a lot of facts which you do not give, contact your attorney, they are in the best position to assist you. If you have steady income, you might consider filing a chapter 13, that would allow you to repay the arrears over 3-5 years, but you would have to have the ability to continue to make your regular mortgage payment. How much time you may have in your home depends on a lot of facts which you do not state here, contact your attorney, they are in the best position to assist you.
Answered on Sep 19th, 2011 at 9:02 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Yes, you owe back payments, late charges, etc. and the bank will foreclose eventually unless you pay or modify the mortgage. Chapter 7 does not affect secured debt.
Answered on Sep 19th, 2011 at 4:30 PM