Will I be able to keep my home if I got a discharge from my chapter 7 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

Free Answers to your Legal Questions by Lawyers.
ask »


Will I be able to keep my home if I got a discharge from my chapter 7 bankruptcy?

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?

Answer By Alan D. Walton
Breckenridge and Walton
Contact this Attorney Now

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.

Answer Applies to: Michigan
Replied: 10/5/2011

Answer By Asaph Abrams
Law Office of Asaph Abrams
Contact this Attorney Now

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.

Answer Applies to: California
Replied: 9/23/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
Contact this Attorney Now

You still owe the back payments and they will foreclose on you. You should see a lawyer ASAP about Chapter 13 and/or reopening the chapter 7 case and converting it to Chapter 13. That is a bankruptcy that lets you get caught up on the payments.

Answer Applies to: California
Replied: 9/21/2011

Mercado & Hartung, PLLC
Contact this Attorney Now

The property is still on the hook for the security interest, if you want to keep it you will need to pay the mortgage.

Answer Applies to: Washington
Replied: 9/21/2011

Answer By Duncan T Pham
D T Pham Associates, PLLC
Contact this Attorney Now

Did you reaffirm your home mortgage ??? If you did, you will keep your home for as long as you make the payments called for in the reaffirmation agreement.

Answer Applies to: Texas
Replied: 9/20/2011

Answer By Kevin Heupel
Heupel Law
Contact this Attorney Now

In order to keep your home after filing Chapter 7, you need to make all mortgage payments including the arrearages.

Answer Applies to: Colorado
Replied: 9/20/2011

Theodore N. Stapleton, PC
Contact this Attorney Now

It depends whether you reaffirmed the mortgage on your house. Generally you must keep current on your mortgage to prevent foreclosure.

Answer Applies to: Georgia
Replied: 9/20/2011

Bankruptcy Law office of Bill Rubendall
Contact this Attorney Now

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.

Answer Applies to: California
Replied: 9/20/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
Contact this Attorney Now

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).

Answer Applies to: Colorado
Replied: 9/20/2011

Law Office of Lynnmarie A. Johnson
Contact this Attorney Now

Yes you certainly do owe the back payments. If you do not fairly quickly catch them up the mortgage company may accelerate the foreclosure process due to your filing bankruptcy and not being caught up on them. I would call the mortgage company and see if they will consider some type of modification that would bring you current or perhaps enter into an agreement where you agree to pay partial payments on top of your regular payments until it is caught up. You can definitely lose your home over this, so do not procrastinate, call them today!

Answer Applies to: Michigan
Replied: 9/20/2011

© 2017 MH Sub I, LLC. All rights reserved.
Terms & Conditions | Privacy Policy | IB Cookie Policy