Can I file bankruptcy if I have real estate debt? 28 Answers as of August 22, 2011

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.

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.

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.

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.

Yes, of course. Many people who file bankruptcies own real estate that have mortgages.

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.

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.

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.

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.

Yes you can discharge mortgages on properties you want to surrender and reaffirm mortgages on properties you want to keep.

Yes. Requires careful pre-filing planning.

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.

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.

You can file for bankruptcy even if you have real estate debt.

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.

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.

Sure. Of course, numerous things can affect how or why or when you do so. Such as, any equity you may have in these homes

Mortgages are generally dischargeable in bankruptcy. Obviously, you will lose the property if the debt is discharged, however it will prevent any further collections efforts on a deficiency.