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What happens to charged off debt in chapter 7 bankruptcy if you refinance mortgage?
Wiki User
∙ 11y ago
This confuses two different concepts. A "charge off" is an accounting and tax term that means the creditor does not believe a debt is going to be repaid. It gives the lender a tax deduction.
A discharge in bankruptcy is a permanent injunction against a creditor taking any action to collect a debt, including debt collection agencies or successors/purchasers of a discharged debt.
Assuming the refi of the mortgage happens after discharge, nothing happens. If the refi happens while a c 7 or 13 is still pending, and lowers the mortgage payment, and has been approved by the bankruptcy court, it could affect how much you have to pay to the trustee.
Wiki User
∙ 11y ago
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What is a charged off loan when connected to Chapter 13 Bankruptcy?
A charge-off is a tax-related matter and has nothing to do with bankruptcy. The debt is still owed.
Can you buy a house after only one year in Chapter 13 bankruptcy?
Yes. In fact there are lenders who will provide home financing just one day out of bankruptcy. Contact a local mortgage broker (yellow pages). Mortgage brokers have many lenders to choose from and can help you easier than a local bank. The danger is, of course, that you'll be charged such a horrible interest rate that you're far more likely to end up back in the same situation--bankruptcy, foreclosure, etc. It's smarter to be patient, spend two years getting your credit in order, and then look at what sort of mortgage you can get.
Is there a way to lower mortgage payment?
One of the best ways to reduce mortgage payments is to do a mortgage refinance as long as the new mortgage interest rate is at least two to three percent lower than the current rate and there is sufficient equity in the house. It's also important to a make sure there is no prepayment penalty on the existing loan. A prepayment penalty is a fee charged by the lender if a mortgage loan is refinanced before the prepayment expires
What is a mortgage registration fee?
A State or Territory Government fee charged when a mortgage is established or discharged over your property.
Can your creditors change credit report entries from Bankruptcy to Charged Off or Collection after discharge?
No. All entries have to be marked "included in bankruptcy". Obviously that only applies if they were actually included.
Can a medicail bill for a veterains hospitail be charged off in chapter 7 bankruptcy?
Medical bills can be discharged through a bankruptcy.
What is a charged off loan when connected to Chapter 13 Bankruptcy?
A charge-off is a tax-related matter and has nothing to do with bankruptcy. The debt is still owed.
Can a HELOC that is charged-off by the lender be included in a chapter 7 bankruptcy?
It has to be included in a bankruptcy filing. A charge-off is a tax break for the lender. It has nothing to do with whether the debt is still owing.
When You Should Use A Refinance Calculator?
Many consumers struggle with knowing the best time for them to refinance their loans. Using a refinance calculator about every six months can help you decide if refinancing is in your best interest. It is a good idea to refinance a mortgage or auto loan if the interest rate you will be charged is significantly lower than your current rate. Refinancing helps to lower your monthly payment, but people are often charged fees when they refinance, so it should not be done unless the payment will be significantly lower after any fees are paid.
Can you buy a house after only one year in Chapter 13 bankruptcy?
Yes. In fact there are lenders who will provide home financing just one day out of bankruptcy. Contact a local mortgage broker (yellow pages). Mortgage brokers have many lenders to choose from and can help you easier than a local bank. The danger is, of course, that you'll be charged such a horrible interest rate that you're far more likely to end up back in the same situation--bankruptcy, foreclosure, etc. It's smarter to be patient, spend two years getting your credit in order, and then look at what sort of mortgage you can get.
Is there a way to lower mortgage payment?
One of the best ways to reduce mortgage payments is to do a mortgage refinance as long as the new mortgage interest rate is at least two to three percent lower than the current rate and there is sufficient equity in the house. It's also important to a make sure there is no prepayment penalty on the existing loan. A prepayment penalty is a fee charged by the lender if a mortgage loan is refinanced before the prepayment expires
Do charge offs go off if you file chapter 13 bankruptcy?
Charge off will still show up on your credit report as such as well as the bankruptcy. Chapter 13 requires the individual to repay a portion of the charged off balance this is a type of Settlement that the credit card companies/loan agengies will accept as legally binding agreement. Chapter 13 usually require a payment for 36 to 60 months.
Paying for a car but it was charged off. the car was not re-affirmed but was included in chapter 7 bankruptcy?
The fact it was charged off means nothing to you...it is simply an accounting entry by the lender so his financial reports record the loss on the loan. You still owe it and they have the right to collect it.
What is a mortgage registration fee?
A State or Territory Government fee charged when a mortgage is established or discharged over your property.
Can creditors classify an account as a charge-off because it was included in a chapter 7 bankruptcy?
Yes and no. If an account was already charged-off before the bankruptcy, it can be reported as a charge-off. By law, the creditors must charge-off accounts included in bankruptcy, BUT they can not REPORT that charge-off if it happens AFTER the bankuptcy. Negative reporting on discharged debts is a violation of the permanent injunction of the discharge.
Can a Maryland builder be criminally charged after chapter 7 bankruptcy?
Sure if he did something criminally wrong...going BK and having debts discharged is an entirely legal act. BK does not afford any protection from criminal acts though.
Do you need to include all credit cards when filing a chapter 7 bankruptcy?
Yes, all debts and assets must be included in the bankruptcy filing. If a mistake is made and some debts and/or assets are not reported, the filer should contact the BK attorney or the trustee immediately. Deliberately ommitting information on a bankruptcy filing are grounds for dismissal. In addition when information especially assets is deliberately withheld the person(s) can be charged with bankruptcy fraud which is a federal crime and if convicted can be fined and/or imprisoned.
