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If you have a 1st and 2nd mortgage can you list the 2nd in chapter 13 bankruptcy and reaffirm the 1st?
Wiki User
∙ 8y ago
This is one of those "maybe" questions. I would think it doubtful, as you cannot play favorites when it comes to creditors. It will be up to the trustee to decide if that is allowable, and whatever your state statutes allow as exemptions.
I agree with Nikki, this is a "maybe" question. And I'll further amend that to "maybe but probably not."
As Nikki already pointed out, it does depend on the law of the district in which you filed the bankruptcy.
In Indiana (7th Circuit), you can only wipe out a second mortgage and keep the house if you file a Chapter 13 and you can show to the Court, by filing a separate motion (called a Motion to Strip Mortgage), that you owe more on the first mortgage than the real estate is worth. So, if the second mortgage is completely unsecured, you can wipe it out. But, if it is secured by even one dollar, then the whole mortgage survives and has to be paid. The case allowing the stripping of unsecured inferior mortgages in the 7th Circuit is First Bank, Inc. v. John R. Van Wie, et al, Bankruptcy Case No. NA 02-0120-CH/H.
There is also some variation in the law depending on whether the real estate is the debtor's residence or not.
See a lawyer in your area to see what laws apply in your district. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Wiki User
∙ 8y ago
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Can you reafirm your 1st mortgage and file bankruptsy on your second mortgage?
That would be a good trick No if you go bankrupt all of you goes bankrupt, Unles you have freinds in high places. Can't spell and is dangerously wrong. You can only "cram down" the second mortgage in a Chapter 13, and only if there is no equity for the second to attach to. But it can be done if you meet those criteria. You don't "file bankruptcy" on a debt. You file bankruptcy and list all your debts.
Will a cosigner on a mortgage be notified if a borrower files for bankruptcy?
They should be, however if the petitioner does not list, they may not be notified. However, there are ways to verify if a petitioner has filed for bankruptcy.
Will your mortgage company know if you filed bankruptcy?
Yes. When you file bankruptcy you are required to fill out a number of forms. Schedule D is the form for Creditors holding secured claims and a home mortgage is a Secure Debt. You will have a complete list of all your creditors names, addresses, account numbers on a form called the Creditor's Mailing Matrix. The Bankruptcy court sends notification to all the creditors listed that you have filed bankruptcy.
Can you just declare bankruptcy on your home?
No. You do not "declare bankruptcy" ON anything. You declare bankruptcy when you cannot pay your bills as they come due. You must list all your assets and all your debts. What happens after that depends on which title you are filing under, chapter 7, 11, 12 or 13.
Can a prior dismissed debt become payable when a Chapter 13 Bankruptcy is paid off through a mortgage refinance?
This is possible. When you do a Chapter 13 refi you are ususally refinancing your 1st, 2nd, etc, liens on you title and the outstanding debts held by your trustee. So if on your your charge sheet is a debtor lets say his name is XYZ you pay him off and everyone else on your list this takes you out of 13. Hope that answers that question
Can you pick and choose what you include in your bankruptcy?
You have to list everything in you bankruptcy. You may reaffirm what ever you chose to.
Can you file chapter 7 bankruptcy if you owe on a timeshare?
Yea, you can. You must list it as an asset, minus any liens, including a purchase-money loan. you can surrender it or reaffirm the debt.
After bankruptcy and no reafirm can you let your travel trailer be volentary repossessed with no loan bal to payeven if trailer was on bankruptcy list?
reaffirm
We did not reaffirm our van in the bankruptcy and kept making payments if we surrender it to the bank are we liable for the balance after auction?
If you did not list it in your BK, you will be responsible for any outstanding balance that is not recouped in the auction. Yes. Secured property is not dischargeable in any bankruptcy filing. ------------------------------ If you included it in the bankruptcy, but just didn't reaffirm it, you won't be responsible for any balance.
Even if you are current with your car payments should you give back my automobile during chapter 13 bankruptcy?
The simple answer is no. If you are current on your car note, then this is not the issue that lead to the bankruptcy. That you are paying it current may have contributed to your financial situation, but on the surface it is not a reason to surrender the vehicle. Either do not list it or reaffirm it with the lender.
Can you reafirm your 1st mortgage and file bankruptsy on your second mortgage?
That would be a good trick No if you go bankrupt all of you goes bankrupt, Unles you have freinds in high places. Can't spell and is dangerously wrong. You can only "cram down" the second mortgage in a Chapter 13, and only if there is no equity for the second to attach to. But it can be done if you meet those criteria. You don't "file bankruptcy" on a debt. You file bankruptcy and list all your debts.
what should i know about chapter 7 bankruptcy forms?
Chapter 7 bankruptcy requires specific forms to be completed and filed. You can find a complete list of requirements at www.uscourts.gov . Good luck!
If you are behind on your house payments and file chapter 7 bankruptcy can they take your house?
Any nonexempt property that you own becomes part of the bankruptcy estate. If there is enough equity in your house to pay off the mortage or other liens, pay you the homestead exemption, cover the costs of sale and leave money left over to pay creditors, then your house could be taken and sold. You can't leave your house out of the bankruptcy filing. You must list all of your assets. Otherewise, you are committee perjury and bankruptcy fraud.
Will a cosigner on a mortgage be notified if a borrower files for bankruptcy?
They should be, however if the petitioner does not list, they may not be notified. However, there are ways to verify if a petitioner has filed for bankruptcy.
What can you filing under chapter 7 bankruptcy?
You must list all of your debt when filing for Chapter 7 bankruptcy. However, not all debts are eliminated. There are certain exceptions to discharge under the Bankruptcy Code. Your attorney will be able to advise you by looking at your total financial situation.
What schedule do I list garnishment on chapter 7 bankruptcy?
i receive a judgment for ganishment but i have other bills which i qualify for chapter 7 does it get dismissed if i include it in the bankrutpcy
How should an obligation that is discharged in a Chapter 7 Bankruptcy be reflected in a subsequent credit report?
The debt should be identified as being in bankruptcy or discharged in bankruptcy. It will remain on the list for 7 years. The bankruptcy will remain on the report for 10 years.
