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Forclosure with Chap 7 Bankruptcy

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    Forclosure with Chap 7 Bankruptcy

    Ok, my first post in any of these forums, so bare with me. We stopped paying our mortgage in March and have already received out NOD via certified mail this past weekend. We have already found a rental and plan to move into it Mid May.

    My NOD sounds like they may come after me for charges associated with the foreclosure.

    Considering my chapter 7 filing in the next few months, are they able to get anything else from me? From reading the forums here, sounds like I should disconnect my utilities, contact my lender and walk away.

    Thanks for any information.

    #2
    First, in what state are you located?

    Second, once you BK the debt on the house, they can not come after you for any deficiency.

    Third, are you sure you want to move so soon? I have been in my house for a year without payments and my attorney has said not to move until the final judgement and notice of sale - he expects at least another couple of months. Use the time after filing to get back on your feet.
    Filed CH 7 9/30/2008
    Discharged Jan 5, 2009! Closed Jan 18, 2009

    I am not an attorney. None of my advice is legal advice in any way..

    Comment


      #3
      We are located in Texas. I do not expect to file in the next couple of months.
      For a smoother BK we are aiming for August or later bankruptcy. In TX I think its Deed in Lieu, so they can foreclose pretty quickly.

      Im expecting after May 20th or so, ill have 30 days to move out. I rather have the place I want, rather than a place I have to get.

      Ita nice to have some sort of certainty, especially with small children.

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        #4
        What about taxes? I am trying to understand the Mortgage Forgiveness Debt Relief Act of 2007. If we file bankruptcy and include the house, does that releive us from the tax liability (principal loan balance is $374,301, fair market value of our home is about $192,000.)

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          #5
          [QUOTE=imbarbara6;273697]What about taxes? I am trying to understand the Mortgage Forgiveness Debt Relief Act of 2007. If we file bankruptcy and include the house, does that releive us from the tax liability (principal loan balance is $374,301, fair market value of our home is about $192,000.)[/QUOTE]


          Yes, if you are sucessfully discharged from bankruptcy you are relieved from the tax liability. Not because of the Mortgge Foregiveness Debt Relief Act, but because of the bankruptcy statutes.
          Filed CH 7 9/30/2008
          Discharged Jan 5, 2009! Closed Jan 18, 2009

          I am not an attorney. None of my advice is legal advice in any way..

          Comment

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