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Can you keep your primary residence through bankruptcy when you have 2 homes both with negative equity and the secured amount is more than 900000 of debt?
Wiki User
∙ 15y ago
All situations are unique...but the obvious answer is NO.
Just common sense should tell you that your creditors and the court would not allow you to escape debt, even if excusing the neg eq only after sale on these and other obligations, so you can continue to own something like a valuable house.
The question as posed indicates you may not appreciate that BK is all encompassing...it includes (with few exceptions) everything you own and everything you owe. So, if you have a stock investment, that enters the equation and it could be liquidated to pay the negative equity...or any other debt. (Again, you do not pick and chose what is included. Everything is included and all are classified and given priorities (the proceeds from secured debt going to pay that debt first for example) and some things, like a 401k, are classed exempt.)
Also, Chap. 7 and Chap 13 have income and amount requirements (I believe 1.3M of total debt is a major threshold) that may well disqualify you from filing at all.
I am not one, and don't really like them for many things, but your situation is large enough, and I suspect has more things that will be involved and need to be properly handled, and will attract the attention of creditors asked to take a loss instead of you, that you really should get a BK specialized attrny.
Wiki User
∙ 15y ago
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If you filed bankruptcy would your house be foreclosed on?
If you file for bankruptcy the court will be in charge of finding a fair settlement. They can require the person in bankruptcy to sell their primary residence if that is the main asset of value. The rules vary by jurisdiction. Independent of the bankruptcy the lender who has a loan secured by the property can foreclose and force the sale of the home if the payments are not made as agreed. A bankruptcy does not release the borrower from keeping up the payments on the home loan. As most loans state, if you fail to keep up with your payments your home is at risk.
Can you file bankruptcy on a home equity line of credit and keep the house?
You file bankruptcy as an individual. It involves everything you owe and everything you own. You cannot file bankruptcy for only one loan The bankruptcy process can exempt certain assets from the process. Some debts may not be cleared. A debt secured by a specific asset has first call on the funds from the sale of the asset. If the sale fails to pay all that is owed, the additional amounts can be claimed as unsecured debts owed. If you want to know more about bankruptcy in your state and how you may be able to protect your primary residence you should consult with a bankruptcy attorney.
What happens when a creditor doesn't file a proof of claim in a bankruptcy case?
If it is not a secured debt it will be included in the bankruptcy discharge.
Do you get the same tax benefit if your mortgage is financed by a private party instead of a mortgage broker or bank?
Yes, it does not matter who you pay the interest to as long as it is secured by a loan on your primary residence or secondary residence. If your lender does not provide a 1099 at the end of the year, you will have to calculate your interest on your own.
Is a car secured property in bankruptcy?
If there is a loan which used the car as collateral, yes.
If credit card puts lien on house and i file bankruptcy can i still file the credit card in the bankruptcy?
You have to, it is a debt...it is just a secured debt...by the lien on the property.
When a debtor enters bankruptcy a secured creator retains priority to the secured assets unless it files a proof of claim for the full amount owed?
Actually, a secured creditor only retains priority if they file a claim.
What is an unsecured loan used for?
The difference between an unsecured loan and a secured loan is very big if for some reason bankruptcy is declared or the loan cannot pay repaid. Secured means that the buyer still needs to repay and unsecured mean he doesn't if bankruptcy is declared.
When filing bankruptcy which chapter eliminates all debt?
It depends. Most any of the types can, or may not. Some considerations are if your speaking of a business (Corporation) or personal bankruptcy, if the debts are secured or not, and how much of what type of assets there are and if any of them are to be maintained after the bankruptcy as determined by the Court and creditors. There is no personal bankruptcy where secured debts or other obligations such as child support arrearages. A chapter 7 is a total liquidation bankruptcy in which the debtor can discharge all debts that are not secured including judgments, liens that have not been "perfected", stop wage garnishment, etc. The petitioner will however be required to relinquish all non exempted property.
Do you have to get full auto coverage if you file bankruptcy?
If you're auto payment is included in your bankruptcy, then yes, they will require you to keep full coverage as long as there is a secured balance on the vehicle.
Can you file bankruptcy if you are hiding your car from being repossessed?
You can, but it most definitely would not be advisable. The vehicle would have to be listed in the bankruptcy schedule as a secured debt which means it is NOT dischargeable in a BK.
What are creditors holding secured claims?
If you signed a Security Agreement, then your creditor has a secured claim on the collateral specified in the agreement.
