Is mortgage discharged after bankrucy?

[Thomas70785]

Is mortgage discharged after bankrucy?

[Thomas70785]

chapter 13

[justbroke]

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Shortest answer: Not in a Chapter 13 where the debtor is keeping their home.

Long answer: In a Chapter 13, neither the mortgage nor the promissory note (loan) is discharged unless the plan, and Statement of Intentions, indicates that the debtor is surrendering the property which secures the loan.

In a Chapter 7, the bankruptcy code operates differently. Unless the debtor reaffirms the mortgage/note in a Chapter 7, then responsibility to pay the note would be discharged. A debtor would not be personally responsible to make any further payments on the note. However, the mortgage/deed of trust and its lien still secures the note and the property is subject to foreclosure under State non-bankruptcy laws.