If my house was includedin mydischarge but it hasn’t been foreclosed on yet, am I safe to proceed with another house purchase?

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If my house was includedin mydischarge but it hasn’t been foreclosed on yet, am I safe to proceed with another house purchase?

Purchasing another home from a family member. Just want to make sure the lender of original home cannot proceed w/ legal action or try put some sort of garnishment or lean against the new purchase. Chapter 7 discharged 2 months ago.

Asked on February 23, 2011 under Bankruptcy Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If the mortgage was not reaffirmed and the house was surrendered in the bankruptcy then any deficiency in the sale of the house becomes an unsecured debt and it is considered discharged as well. I would, though, double check this in the paperwork that you have from your discharge just to be sure that all is as you say that it is and that it is as I say that it is.  On other words, call the attorney that helped you in the bankruptcy just to be sure.  The last think that you need is the old bank coming after you as you are trying to start a new financial life. 


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