How does a chapter 7 protect you with your mortgage arrears???
-
-
It delays collection activity and the foreclosure process. This gives you an opportunity to catch up on payments, but you won't have much time. Everything will start again once the automatic stay is lifted.Originally posted by michaela View Post
Chapter 7 will also discharge your personal liability for the mortgage as long as you don't reaffirm.
Chapter 13 is a better tool for catching up on mortgage arrears. But, you need to be sure you can really afford to keep your home in the long term before filing a Chap 13 only for that reason.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent! -
I'm going to say it differently than LITR. Chapter 7 does not protect you with mortgage arrears. While the automatic stay will prevent any foreclosure from proceeding (or being filed), that would be short-lived. If you are trying to save property in a Chapter 7, you really need to have the money ready to go, enter into some sort of modification (difficult but possible), or "hope" for the best. Hoping for the best is not the best option and relying on a modification offer is just hope dressed in a different robe.Originally posted by michaela View Post
If you are truly trying to save property, Chapter 13 is the only way to force the lender to allow you to cure any arrears, pay off other creditors (at some percentage... maybe even 0%), and receive a general discharge of your remaining debts after 36-60 months.
What are you really trying to do? How far are you behind?Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.Comment
Bankruptcy Wizard
Comment