If you are not able to make your house payment do you have to file bankruptcy or will the bank foreclose on the house and not garnish your income?
Bankruptcy only temporarily prevents foreclosure action. A house
is considered secure property so it is up to the lender as to what
action will be taken, foreclosure or reaffirmation of the loan. The
bank would pursue foreclosure and not wage garnishment. If you're
in a house you can't afford any longer, sell it. Too many
homeowners wait too long. Don't wait for the bank to foreclose.