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Bankruptcy can eliminate a mortgage debt however normally bankruptcy is not necessary to eliminate a 1st trust deed. The home simply can go back to the lender in a foreclosure. Bankruptcy may be necessary to resolve a 2nd mortgage or trust deed. A 2nd trust deed will not normally bid at a foreclosure sale and it will become a unsecured debt which can be discharged in bankruptcy. Under chapter 13 bankruptcy if the home is worth less than the first trust deed it is possible to eliminate the 2nd trust deed completely. You must see an experienced competent bankruptcy attorney to accomplish this.
Bankruptcy involves everything you owe and everything you own. No exceptions. <br /> YOU DO NOT PICK AND CHOOSE. <br /><br /> Basically, all your assets are used to pay your all debts. Obviously, it is unfair, and not the intention of BK to let you keep the assets of value you want, and escape paying for the things you don't want to pay for. Nor can one debtor be treated preferentially to others. <br /><br /> After all things are listed, they are given different legal priorities. Somethings of each are excluded (like your personal furniture can't be taken, nor can child support be discharged). They must be listed to be given the proper handling by the court. Not doing so has severel very bad implications: First, you swear to the court that you are doing so and not doing is a criminal act, prosecuted as fraud. Anything not listed isn't protected...and the entire case can be dismissed. <br /><br /> The proceeds from assets that a secured debt are attached to, like a mortgage to a house or car loan to the car, are first entirely used to pay those specific debts. any excess still owed becomes an unsecured claim against all the other assets. <br /><br /> In a C-13 a payment plan encompassing all the debts is made and administered by the court....if at the end of the plan a debt is still owed it may be discharged, although secured loans still have the asset to turn to and sell for recovery.
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Where can someone find information about getting mortgage loans after bankruptcy?
Quicken Loans has an excellent section on how to obtain a loan or mortgage after filing bankruptcy. Most debt consolidation centers and bankruptcy attorneys will have information or references for those seeking information on applying for a post-bankruptcy loan or mortgage.
What happens to a mortgage after a bankruptcy?
What happens to a mortgage after bankruptcy depends on whether or not the debt is reaffirmed. If the mortgage is reaffirmed the homeowner continues to pay it as if the bankruptcy had not been filed, since the debt has not been discharged. If the debt is not reaffirmed, what happens to the mortgage depends on the policies of the individual lender.
Can you file bankruptcy against a divorce order in North Carolina?
Whether you can eliminate a debt that resulted from a divorce decree will depend on the type of debt. If you owe child support or alimony from a divorce then you will not be able to eliminate the debt in bankruptcy. If the divorce assigned some debt to you as part of the divorce and it was not assigned as child support or alimony then you may be able to eliminate the debt in a Chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to eliminate debt assigned to you that is in the nature of a property settlement and not child support or alimony.
When filing for bankruptcy and owing to a line of credit does the bank still keep the house even if this one is protected with a homestead insurance?
Generally speaking, when Chapter 7 bankruptcy is declared, it means a person's debt exceeds their assets. If the amount of debt owed to a mortgage bank for a home, the bank has no interest in taking a home which will not cover the mortgage debt. All debts are wiped away.
What regarding bankruptcy is not true?
Creditors must always eliminate the debt owed by the debtor when there is a bankruptcy.
Will filing bankruptcy eliminate criminal court fees?
If you are sued and a creditor gets a judgment against you, you may be able to discharge your personal liability on that judgment in a Chapter 7 bankruptcy. This will depend on whether the underlying debt is dischargeable (meaning you can wipe it out in bankruptcy) or nondischargeable.
CAN I QUALIFAY FOR A HOUSE LOAN IF I HAD CHAPTER 13?
Yes it is possible to qualify for a mortgage despite a Chapter 13 bankruptcy filing. In a Chapter 13 filing the debtor agrees to a court structured debt repayment schedule. Typically, after making payments on time to creditors as required by the bankruptcy agreement an individual can be discharged by the Court from the Chapter 13 proceeding. Once discharged from bankruptcy an individual can apply for a mortgage. Each bank has different rules about how soon someone can apply for a mortgage after a bankruptcy. Most people coming out of bankruptcy apply for an FHA mortgage loan since this program has the most lenient underwriting standards.
How can you find information to eliminate debt?
The are a few different ways someone can eliminate debt. The best way would be to speak with a debt counselor that can guide you on your individual needs. You can also speak with a bankruptcy lawyer. Even if you do not want to file for bankruptcy, they can guide you on how to get that debt eliminated.
What if the debt is incurred after the bankruptcy filing but before the bankruptcy discharge?
When an individual files for bankruptcy, he/she must list down all the creditors and debts that they have. If the bankruptcy has already been filed and the individual has incurred new debt but has not yet been discharged by bankruptcy, that new debt is not included in the bankruptcy discharge. For an official opinion, it is advised you seek legal counsel. It is really important to seek legal advice from the expert about filing for bankruptcy.
Mortgage lates after filing chapter 7 Can a mortgage company report lates after filing of a chapter 7 and before a discharge?
Yes. That reporting to a credit agency of an item of fact, is not an attempt to collect the debt. Your not expecting you mortgage debt to be discharged are you?
How does one get a mortgage after suffering bankruptcy?
"Bankruptcy status remains on a person�۪s credit report for 10 years, but mortgage lenders want you to hold off on getting a mortgage for at least two or three years. If your post-filing debt payments have been reported to your credit agency as being on time, and you have steady employment, your chances of getting a mortgage financed increase considerably."
What are my options for debt relief besides filing bankruptcy?
Instead of filing bankruptcy, you can contact your lenders and negotiate settlements with them. If they are aware that you are facing bankruptcy, they often will settle for amounts less than what you owe them.
