If you are current on a mortgage and stop making payments while in Chapter 7, what happens?
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If you are current on a mortgage and stop making payments while in Chapter 7, what happens?
My dad canno longer can afford to make payments. Does the Chapter 7 free him from the debt? Does it at least free him from the debt on the house if he does a deed in lieu?
Asked on August 23, 2011 Florida
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
If he stops making payments, eventually the mortgage lender will foreclose. As long as he does not reaffirm the debt in his bankruptcy case, the discharge will cover anything he owes on the mortgage.
In most states, if this is the original mortgage, he would not have any liability for a deficiency on it anyway.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Follow Me on Twitter: @bklawr
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
If he stops making payments, eventually the mortgage lender will foreclose. As long as he does not reaffirm the debt in his bankruptcy case, the discharge will cover anything he owes on the mortgage.
In most states, if this is the original mortgage, he would not have any liability for a deficiency on it anyway.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Follow Me on Twitter: @bklawr
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