What happens when you file bankruptcy and have a mortgage?
A Chapter 7 bankruptcy wipes out your financial debt including your mortgage, but you could lose your house. A Chapter 13 bankruptcy is more of a real organization and you can even catch up on payments as long as these are included in your plan. If you do get to keep your home, make sure your payments stay current.
How long can you stay in your home after filing Chapter 7?
Depending upon where you live, you may be able to remain in your home for six months or more after your Chapter 7 bankruptcy has been finalized. Once your bankruptcy is discharged, you will need to find another place to live. However, you may not need to leave your house immediately.
What happens to house after bankruptcies?
The bankruptcy discharge eliminates your personal liability for the mortgage, but it does not alter the lien that secures the mortgage. Thus, after bankruptcy, the mortgage lender still has its rights in the property, including the right to foreclose if you don’t make payments or otherwise breach the loan agreement.
Do I still own my home after Chapter 7?
Chapter 7 Won’t Help You Keep a Home If You’re Behind on the Mortgage. If you are in arrears or facing foreclosure, Chapter 7 doesn’t provide a way for you to catch up. So, unless you can negotiate something with your lender independently from the bankruptcy, you will most likely lose your home. Here’s why.
How do you qualify for Chapter 7 if you make too much money?
Even if you make too much money to pass the Chapter 7 means test automatically, you might still be able to qualify for Chapter 7 bankruptcy. The two-part means test allows you to deduct certain expenses in full to reduce your disposable income.
Will they take my furniture in Chapter 7?
In most cases, you can use state or federal exemptions to keep most or all of your household goods and furniture when you file for Chapter 7 bankruptcy. Most Chapter 7 bankruptcy filers can keep all of their household goods and furniture in bankruptcy.
Can Chapter 7 be removed from credit before 10 years?
According to the Fair Credit Reporting Act (FCRA), a Chapter 7 bankruptcy can remain on your credit history for up to 10 years from the filing date and a Chapter 13 bankruptcy can remain for a maximum of seven years. A bankruptcy cannot be removed simply because you do not want it there.