If my home loan modification is denied, can I claim bankruptcy on late payments?

Asked on November 1, 2013 under Bankruptcy Law, Maryland


Brett Weiss

Answered 7 years ago | Contributor

You can discharge the entire debt in a Chapter 7; you can't wipe out just missed payments, and if you can't bring the loan current, you can lose the house. You can get time to catch up the missed payments in a Chapter 13.

Terence Fenelon / Law Offices of Terence Fenelon

Answered 7 years ago | Contributor

You must state the loan deficiency on the petition, but it won't be discharged.  The only way to obtain any forgiveness of past due loan payments owed to a first mortgage holder is to file a chapter 13. The late payments will not be forgiven (discharged) but you may be able to catch up over the term of the plan, while still paying a percentage to other creditors.  I would advise you to get counsel.  A chapter 13 can be hazerdous if you don't know what you are doing.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.