Being laid off after 341 - What to do with mortgage

[mylesbp]

I was told today that I won't be needed at work at the end of this month. I filed a 7 and had my 341 a couple weeks ago and the trustee has said there is no distribution.

On my filing I said I was going to keep my house (1st and 2nd mortgage) but I have not signed any reaffirmation papers.

If I don't find a new job quickly I won't be able to keep the house and I'm fine with that. I would also like to conserve cash so I'd like to stop paying my 1st and 2nd now.

Is that ok? What can happen if I stop paying before my discharge? I needed the 1st and 2nd mortgage payments to qualify for a chp7.

I email my attorny, but his office said he was out this week. Just trying to find out what will happen. I'm in the Southern Ohio district if it helps.

Thanks!

[mylesbp]

Anyone have any thoughts?

[keepinitreal]

Does your attorney have a solo practice, or can you talk to someone else in the same law firm while he's on vacation? Will you qualify for unemployment compensation after you get laid off at the end of this month?

That's good that you didn't sign re-affirmations on either mortgage. If you stop paying them, the bank(s) can't come after you.

[mylesbp]

I should be able to collect unemployment. Unfortunately it is a solo practice and his paralegal didn't really know.

I'm holding off on sending my mortage payment that is due on the 15th of the month untill I hear something.

I don't think lawyers should be able to take vacations when I have issues

[BobMango]

I'd stop paying now on those mortgages now as the odds that it will not affect your discharge is minimal.

Since you won't have the income to pay those they can't force you to reaffirm or into a 13. Save as much money as you can now and ride out the foreclosure.

[willsurvive]

We thought we were going to keep our house too and that was the intent on our bk papers. Well, long story short, dh lost his job. We never signed reaffirmation papers, and we haven't paid in 18 months. We have received our NOD, so the foreclosure process is on its way, but there was never a problem with not paying it as far as the bankruptcy goes.

Good luck to you, being unemployed is hard!