If I file Chapter 7 Bankruptcy can I still keep my house?
If you file Bankruptcy there are some things you need to know.
1. If you file chapter 7 and want to keep the house you need to re-affirm the house with your Mortgage Company.
2. If you file Chapter 13 you need to maintain your normal house payment in addition to the Bankruptcy payment.
When you file a Chapter 7 Bankruptcy and intend to keep the home you need to file the re-affirmation paperwork. The reason is if you don't and you get behind on the payments... the Mortgage Compony will not work with you and will require the full amount that is past due. If you filed the paperwork they may work with you and approve you for a workout to repay the delinquency over time.
This is a question that was asked to us over our website questionnaire by a prospective client.
"I filed Chapter 7 bankruptcy and need to know any options I have at this time. Court Summons filed March 28,2007 and I have 28 days to respond.
This is why we bring up the point about filing the re-affirmation papers. If you did file them then there are many options that would be available to you. If you did not then you will be required to catch the loan up in full.
Basically the re-affirmation paperwork makes you responsible for the loan again. The Chapter 7 erased that responsibility from you. The Mortgage Company will allow you to stay in the home as long as you continue to make the payments if you did not file, but once you get behind you are done.
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IMPORANT NOTICE – PLEASE READ There is no guarantee you will receive a loan modification. Even if you accept this offer and use our service, your lender may not agree to change your loan. Loan Modification approval is dependent on criteria including but not limited to hardship, income, debt ratios. American Foreclosure Specialists is not a Bank, nor a government agency or government affiliate. Our services are not approved by the government or your lender. American Foreclosure Specialists assists in the document preparation, working with and communication with your Mortgage Bank in the attempt to acquire an approved Loan Modification. If you stop paying your mortgage, you could lose your home and damage your credit rating. Loan Modification Plans are dependent upon mortgage company criteria and financial information gathered as part of the efforts of AFS. The information and notices contained on this website are intended as informational and should not be regarded, as financial or legal advice. AFS attempts to ensure that the material contained on the website is accurate and complete at the date first published, however you should recognize that information contained on this website may become out of date over time. Readers who have particular questions regarding real estate law, finance, or who believe they require legal counsel, should seek the advice of a financial advisor or an attorney. Submitting a contact request, gives AFS consent to contact you by telephone and/or email, even if you have previously listed yourself on any state or federal Do-Not-Call List.