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If you discharge the debt of your home with a chapter 7 bankruptcy can they take your home if you are paying the monthly loan payments?
Wiki User
∙ 15y ago
The debt is secured by the property. The debt won't be discharged without the property being used to pay off as much of that debt as possible (called a secured claim..getting the first right to the money from that asset - any excess (that is extra debt) becomes an unsecured claim pais by the sale/seizure/sue of the unsecured assets)....NO IN BK YOU DON'T GET TO JUST DISCHARGE DEBTS AND KEEP ASSETS. BK involves all of your debts and all of your asssets...(not selected ones)...they are given priorities under the law and by the court...one is used to pay the other...excess debt of some types may be discharged and in essence "forgiven". And I'm confused, if you think the debt on your home was discharged - so their is no loan...what payments would you have to default on?
Wiki User
∙ 15y ago
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What is a Chapter 13 trustee used for?
Chapter 13 trustee is an entity, generally an individual, with the responsibility of managing a chapter 13 bankruptcy estate. The Chapter 13 receives the debtor's monthly payments and then distributes those funds proportionally to the debtor's creditors.
Can a mortgage company add past-due payments that were included in a chapter 13 to the amount owed on a house and increase monthly payments to make up for the amount added?
Absolutely not, once a debt is covered by chapter 13 bankruptcy. That debt and its interest rate can no longer be billed for.
When filing chapter 13 repayment plan do you still have to make your current monthly payments or through filing bankruptcy can they be lowered?
You have to make whatever payments are required as determined by the BK analysis, which should be lower than trying to make all your normal payments.
Bankruptcy without losing home?
You can keep your home in a chapter 7, if it is determined that you do not have an equity position in your home that succeeds your state's statutory exemptions, as long as you continue to be current on your monthly mortgage payments.
How long can you stay in your home after chapter 7 bankruptcy in Illinois?
If, after meeting with an attorney, it is determined that you do not have an equity position in your home that exceeds the Illinois statutory exemptions, you will be able to keep your home in a Chapter 7, as long as you continue to be current on your monthly mortgage payments.
Can I file bankruptcy and keep my home?
If it is determined that you do not have an equity position in your home that exceeds the state statutory exemptions, you will be able to keep your home in a Chapter 7, as long as you continue to be current on your monthly mortgage payments
Can you keep home in bankruptcy?
In the State of Illinois, you can keep your home while filing a Chapter 7 if it is determined that you do not have an equity position in your home that exceeds the Illinois statutory exemptions and continue to be current on your monthly mortgage payments.
Can you get an auto loan after filing for bankruptcy but before it is discharged?
Yes, you can get an auto loan before bankruptcy discharge. If you have filed a chapter 13 bankruptcy, you must receive permission from the court trustee. Contact your attorney to begin the process. The court will set limits as to maximum loan amount and monthly payments. DO NOT apply for a loan of any type before getting approval from the court! Doing so could be grounds for dismissal of your bankruptcy, depending on the regulations of your particular court district. If you have filed a chapter 7, there are certain automotive lenders who will finance you after you have attended the (sect. 341) meeting of creditors. However, if you are unable to find one of these lenders, your discharge is usually granted within a few weeks of the 341 meeting and you will be able to purchase then.
Does reaffirmation apply to ch 13 And if so and your mortgage was not reaffirmed can the mortgage company foreclose if mortgage payments are current How about after discharge of the debt?
Reaffirmation does apply to Chapter 13 bankruptcies, and the benefit of filing a Chapter 13 case is that you are usually able to retain your home (as opposed to a Chapter 7 case, where all of your assets are normally sold). Customarily, the debtor and lender enter into an agreement within the bankruptcy to cure the arrearages over a period of time while the debtor continues to make monthly payments. That said, if the debtor falls behind on the payments, the lender can petition the court for relief from the automatic stay and proceed to foreclosure. A lender may never foreclose if the mortgage payments are current and the debtor is in compliance with the other provisions of the mortgage. If your lender is foreclosing and you believe that you have made your payments on time (or adequately cured the arrearage in the bankruptcy), then you should contact an attorney immediately.
What happens when you can't make your chapter 13 monthly payments anymore?
You can either convert to a c. 7 or wait for the c. 13 trustee to move to dismiss your case. You should discuss these options with an experienced bankruptcy lawyer.
Chapter 13 FAQ?
Since 2008, more people have been laid off than any other time since the Great Depression. If you have been laid off or just can't make ends meet, your credit may suffer. When debt mounts and you can no longer pay your bills, you might consider filing for a chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to bundle your payments into one monthly lump sum payment and continue these payments for five years. The amount that you pay depends on your disposable income, as determined by the budget that you submit to your lawyer and the court. After five years, your debt is discharged. There are several advantages to a chapter 13 bankruptcy. First, many people do not qualify for a chapter 7 bankruptcy. If you make more than the median household income for your family size in your county, you will not be permitted to file for a chapter 7 under most circumstances. In contrast, anyone can file a chapter 13 bankruptcy as long as they can demonstrate that their debts outstrip their income. In addition, most of your assets are protected with a chapter 13 bankruptcy. As long as your home or vehicle payments are not in default, you can keep them, including a certain amount of equity in your home as determined by your state. Your assets are safe as long as you make the minimum payments. Creditors will be ordered by the court to not contact you in an attempt to collect payment. Chapter 13 bankruptcy is not a cure-all for all for all your debt woes, however. You cannot default on your federal or private student loans, for example. In addition, if you have any co-signers on your debt, the creditors may pursue them for the payments and their credit will be affected if they cannot make the payments for you. Further, the bankruptcy remains on your credit record for seven years after the discharge. Because you must make payments for 5 years before the debt is discharged, your credit will be negatively affected for a total of 12 years. While you can file bankruptcy on your own in many states, you should consider hiring an experienced bankruptcy lawyer. Your lawyer knows the ins and outs of the bankruptcy process in your state and she can help you save time and effort with the court proceedings. In addition, many lawyers offer a free consultation.
Would you have to pay monthly notes in filing chapter 7 on my vehicle?
You don't file bankruptcy "on your vehicle." You file bankruptcy to discharge all your debts. You don't get to pick and choose which creditors. But, secured creditors either have to continue to be paid or you have to surrender the collateral, in which case the balance due on the secured note would be discharged.
