DoI have to continue paying for my house ifI file for Chapter 7?

Asked on December 6, 2010 under Bankruptcy Law, Alabama


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Do you want the house? If you're not concerned about keeping it, you can stop paying on it. However, if you want to keep a house secured by  a mortgage, ultimately, you will have to pay the mortgage; if you do not, the creditor will be able to foreclose on the house and take it, though the bankruptcy filing should protect you from a "deficiency judgment" for any remaining balance on the loan. Note that during the bankruptcy, there will be an "automatic stay," or period of time during which you do not have to pay creditors, so even if you want to keep the home, you'll get a respite from paying; however, ultimately, to keep a house with a mortgage on it, you have to pay that secured debt.

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