LA Business Daily
Bankruptcy, Keep house with Chapter 7?
Is it possible to negotiate with mortgage lender to somehow keep house when filing Chapter 7 bankruptcy? How about Chapter 13. It seems to me that once bankruptcy is discharged that more discretionary income would be available to make the mortgage payments.
Public Comments
- Bona C...It all depends on the status of your mortgage, are the loan payments current?? If they are, you can "re-affirm" on the loan, agreeing with the bankruptcy court to continue to pay per the norm. This is a chapter 7 and if you qualify for it. If you are behind on the mortgage, you would go into a chapter 13 payment plan, which takes money from your paycheck, similar to a garnishment but called a wage order. The chapter 13 plan runs approx 5 years. The money is sent to the U.S. Bankruptcy Trustee either weekly or bi-weekly, however you get paid, and in return pays your creditors , paying secured debts first, unsecured last. You can contact a local bk attorney and get in to see them on a free consult. My advice, contact 2 or 3, compare prices as they all don't charge the same to file, go with the one you feel the most comfortable with. You can review additional information at www.usbankruptcy.gov...This is the courts official website and has lots of excellent information on what is required. Good Luck!!
