What Happens To A Mortgage In Chapter 7?

A number of things can happen to a mortgage in a chapter 7 bankruptcy depending on the intent of the debtor regarding the property. The debt in the mortgage can be reaffirms in that case the debtor would keep the home and continue to pay the mortgage the home in the mortgage could be surrendered to the bank and the debt discharged in bankruptcy there is also an option for modification of the mortgage if the debtor is behind on the mortgage.

Can The Bank Foreclose While In A Chapter 7 Bankruptcy?

There is normally a stay in place when a debtor files a bankruptcy petition. This prevents any creditors whether it be secured creditors as in the case of a mortgage or unsecured creditors as in the case of CE credit card from continuing to collect on the account during the pendency of the bankruptcy. A creditor especially a secured creditor as in the case of a mortgage can go to the court to lift what’s called the automatic stay and in that case if the judge grants the motion to lift the stay the collection activity can then continue.

Can I Sell My House After A Chapter 7 Discharge?

Depending on how the house and mortgage are handled within the bankruptcy after a bankruptcy if the house remains in the debtors name the debtor is generally free to do what they wish with the property.

What Happens When You Surrender Your House In A Chapter 7?

If your house is surrendered during the pendency of a bankruptcy usually the mortgage holder takes the property back or continues the foreclosure process and sells it out of foreclosure sale. The funds would then go first to satisfy the mortgage and anything left over would go either into the bankruptcy estate for the trustee to distribute or of the bankruptcy was over possibly back to the debtor if they were no other liens on the property.

Do I Have To Give Up My Car In A Chapter 7 Bankruptcy?

Like most assets there are certain exemptions that apply to personal property in a bankruptcy proceeding. This prevents the trustee or a creditor from Levi and sale of that property within certain guidelines or exemptions so typically a debtor is able to maintain or keep their vehicle if they are within those exemption parameters.

Can I Finance A Car Before My Chapter 7 Is Discharged?

This would depend on the issuer of the credit and the state of your credit prior to filing a Chapter 7 bankruptcy. It’s generally not advisable to enter into new long term or expensive contracts if you’re experiencing financial difficulty the trustee may frown upon it or could considered a fraudulent situation in such a case they can investigate the Chapter 7

For more information on Chapter 7 Bankruptcy In New York State, a free initial consultation is your best next step. Get the information and legal answers you’re seeking by calling (914) 686-3171 today