If a homeowner declares bankruptcy, canthey put off having to pay theirmortgage for an amount of time?

Get Legal Help Today

 Secured with SHA-256 Encryption

If a homeowner declares bankruptcy, canthey put off having to pay theirmortgage for an amount of time?

I have a friend considering filing for bankruptcy and he is a homeowner. He’s curious as to whether or not he could get out of paying off his mortgage for a bit of time.

Asked on September 3, 2010 under Bankruptcy Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Once bankruptyc is filed, all debt payments and debt collection efforts are automatically "stayed," or deferred, for a period of time. However, for secured debts, like a mortgage, this may or may not be helpful: in order to keep the home, the homeowner will still have to pay his/her mortgage--otherwise, the lender can foreclose--so not only will any stayed payments have to be made up later (they don't go away), but I believe interest will continue to accue while payments are stayed.

Decideding whether to file bankruptcy, which one to file (the two main ones for private citizens, Chapter 7 and Chapter 13, are VERY different), and how best to maximize benefits under bankruptcy, are all very complex; your friend should consult with a bankruptcy attorney, rather than try to do this himself. Whatever he pays in lawyer fees will likely be recouped, with "interest," in terms of making better use of the bankruptcy law.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption