Can I file bankruptcy if I have real estate debt? 33 Answers as of June 09, 2013

I own real estate with mortgages and I am running out of money to pay my expenses.

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Yes, you can file Bankruptcy and your personal liability will likely be discharged. However, the mortgage company's security interest can be enforced through the property.
Answer Applies to: Washington
Replied: 8/22/2011
Heupel Law
Heupel Law | Kevin Heupel
Yes, filing bankruptcy is a good way to get rid of real estate debt.
Answer Applies to: Colorado
Replied: 8/22/2011
Eric J. Benzer, Attorney at Law
Eric J. Benzer, Attorney at Law | Eric Benzer
Yes.
Answer Applies to: Maryland
Replied: 6/9/2013
Law Office of Andrew Harris
Law Office of Andrew Harris | Andrew Harris
Absolutely.You can keep the property in a chapter 7, as long as you are current on your payments, and continue to make your payments.If you are in arrears, you can catch up on the payments in a Chapter 13 plan.And, if you are walking from the house, then the mortgage/s will go away in the bankruptcy.
Answer Applies to: Oregon
Replied: 8/22/2011
Law Office of John C. Farrell, Jr.
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
Yes but you should consult with a bankruptcy attorney to see which type you qualify for - CH13 or CH7.
Answer Applies to: Massachusetts
Replied: 8/21/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Bankruptcy can be used to eliminate or reorganize debt.
    Answer Applies to: Indiana
    Replied: 8/20/2011
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    Real estate debt is a very good reason to file bankruptcy. If your real estate debt was for property you purchased for investment, you have a good chance of qualifying for chapter 7 without regard to how much income you make.
    Answer Applies to: Illinois
    Replied: 8/20/2011
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    Yes you can, it would depend on the amount of debt and income you have as to what options you had.
    Answer Applies to: Florida
    Replied: 8/20/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    You can certainly file bankruptcy with real estate debt, but you will not be able to keep the real estate without paying the associated liens. If you don't pay the debt, you will have to give up the property.
    Answer Applies to: Colorado
    Replied: 8/20/2011
    Lewis Adams and Associates
    Lewis Adams and Associates | Lewis P. Adams
    Yes.
    Answer Applies to: Utah
    Replied: 6/9/2013
    Ross Smith, Attorney at Law
    Ross Smith, Attorney at Law | Charles Ross Smith III
    You'll probably see your neighbor at the attorney's office. Go talk to an experienced before you do something silly. Like raid your 401k or refinance your home. Go now. Good luck.
    Answer Applies to: Ohio
    Replied: 8/20/2011
    Benson Law Firm
    Benson Law Firm | David Benson
    This is probably one of the most common reasons today for filing bankruptcy. However, determining whether to file and, if so, under which chapter of the Bankruptcy Code will require a review of your assets and liabilities, and income and expenses.
    Answer Applies to: Ohio
    Replied: 8/19/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Mortgages are secured debts. A mortgage or deed of trust is a lien. Those liens are not removal in Chapter 7. A junior lien on a personal residence where the value of the property is less than the balance of the senior lien can be stripped off the property title in Chapter 13. If you want to keep the house the mortgages or deeds of trust that you cannot strip off in Chapter 13 must be paid. Otherwise, the bank can foreclose after asking the court permission (relief of stay). You certainly need a lawyer to advise you and handle your case.
    Answer Applies to: California
    Replied: 8/19/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    You can file chapter 7 or chapter 13 if you have real estate debt. If you cannot afford the payments chapter 7 is better than a chapter 13, which is a payment plan for your debts.
    Answer Applies to: California
    Replied: 8/19/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    You can file bankruptcy even if you have real estate debt. If you have a lot of rental properties it could start to get complicated in a hurry. You should discuss your options with an attorney.
    Answer Applies to: Arizona
    Replied: 8/19/2011
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Yes you can. However, whether you're intending to save your property and whether you have the income to cure the arrearages and keep paying the future mortgage is another issue. Unless you intend to surrender the property altogether, then your obligation to pay the remainder will be discharged.
    Answer Applies to: Florida
    Replied: 8/19/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Yes, of course. Many people who file bankruptcies own real estate that have mortgages.
    Answer Applies to: California
    Replied: 8/19/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    It depends on many factors. Anyone can file for bankruptcy. The issue is whether a given person's financial situation will improve by filing. Without more info I cannot say whether filing will be a benefit for you.
    Answer Applies to: California
    Replied: 8/19/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Yes. In Ch.7 you can surrender the house and owe nothing more. If you choose this route, stay in the house until you *know* there's a new owner. Keep up HOA fees after filing, and keep liability insurance in place. You could choose to file Ch. 13, in which you pay your usual mortgage plus something more so the arrears are paid off at the end of 5 years. This doesn't sound like the better option for you, though. And when you file please retain a good Bankruptcy lawyer- this will save you in so many ways.
    Answer Applies to: Virginia
    Replied: 8/19/2011
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes.
    Answer Applies to: Michigan
    Replied: 6/9/2013
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Yes, you can use Bankruptcy to assist you with real estate debt. It is important that you speak with a Bankruptcy Attorney to give you advice on the appropriate Chapter depending on your situation and what you wish to have done with the property.
    Answer Applies to: New Hampshire
    Replied: 8/19/2011
    Bankruptcy Law Center
    Bankruptcy Law Center | Bill Zurinskas
    Yes, Bankruptcy will eliminate real estate debt, unless reaffirmed, or you may have the option of continuing to pay the mortgages and keep the real estate.
    Answer Applies to: Colorado
    Replied: 8/19/2011
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    Yes. Requires careful pre-filing planning.
    Answer Applies to: Colorado
    Replied: 8/19/2011
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    Yes you can discharge mortgages on properties you want to surrender and reaffirm mortgages on properties you want to keep.
    Answer Applies to: Georgia
    Replied: 8/19/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    You can file bankruptcy with or without real estate debt. What you file will affect whether you retain, or must pay for the realty, or whether you can discharge or change it. These decisions are why you need an experienced lawyer.
    Answer Applies to: Georgia
    Replied: 8/19/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    Yes, you can file bankruptcy if you have real estate debt. You will need to have the tax assessor's statement for each property you own as well as a statement showing the amount owed on each property. You can elect to keep some or all of the properties if you reaffirm and there is not excessive equity in the properties. To reaffirm most lenders require you to be current and for the property to be insured. You also have to be able to demonstrate that reaffirming on the debt will not be an undue hardship on you or your dependents. You also have the option of surrendering the real estate and walking away from the property and the debt.
    Answer Applies to: Alabama
    Replied: 8/19/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You can file for bankruptcy even if you have real estate debt.
    Answer Applies to: California
    Replied: 8/19/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    Yes! Real estate related debt is one of the many reasons people choose to file bankruptcy. Depending on your particular situation through bankruptcy you may be able to strip away unsecured mortgages and keep the property, or surrender the property and avoid any personal liability for the debt. However, depending on state law, you may not be personally liable for the debt in the first place and may not need to file bankruptcy. You should consult with an attorney to learn more about your options.
    Answer Applies to: California
    Replied: 8/19/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Absolutely you may do that. Does the property have any equity, and if so how much? That is definitely information that is necessary to have, but yes, people with real estate can file for bankruptcy and do it all the time.
    Answer Applies to: California
    Replied: 8/19/2011
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