Asked in Debt and BankruptcyBankruptcy LawForeclosure
What happens when you file bankurpty on your house?
January 19, 2008 3:15PM
YOU file bankruptcy. (Not your house).
It involves ALL of your asserts and liabilities...not only those you want it to or chose.
Your house is one.
The mortgage on that house is another.
The taxes on that property, yet another.
On and on it goes.
All are given different classes or levels of priority. Some are even exempt - either as a debt to be excused, or an asset to be used. Again, you don't chose (because you would say include only what I owe and don't want, exempt or exclude everything else. Like thinking it would be right if I don't want the mortgage or the tax, but I do want the house.). And the creditors don't chose...can you guess why? (Although the most they would likely ask for it to get what you promised to pay them).