Can I keep my house if I file a chapter 7 and my house is in foreclosure? 21 Answers as of March 26, 2015

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Question: Can I keep my house if I file a chapter 7 and my house is in foreclosure? - the chapter 7 will only prolong the agony of going through the foreclosure. Only in a Chapter 13 can you start to make regular monthly payments and pay the mortgage arrearage through the chapter 13 plan.
Answer Applies to: South Carolina
Replied: 3/26/2015
Underwood & Riemer, P.C.
Underwood & Riemer, P.C. | James D. Patterson
If you are behind on your payments, you cannot keep it if you file a chapter 7. Only a Chapter 13 if filed before the foreclosure can take the amount that is behind and bring the loan current.
Answer Applies to: Alabama
Replied: 3/25/2015
Stephens Gourley & Bywater | David A. Stephens
You can keep it, but you will have to pay for it too.
Answer Applies to: Nevada
Replied: 3/24/2015
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Only if you become current with your mortgage payments before the foreclosure sale. You can still file a Chapter 13 to catch up on back due mortgage payments. The Chapter 13 would have to be filed before the foreclosure sale.
Answer Applies to: Colorado
Replied: 3/24/2015
Michael J. Duggar, P.A.
Michael J. Duggar, P.A. | Michael J. Duggar
Chapter 7 makes no provision for making up the past due payments and if you are in default, you will still be in default after the completion of the bankruptcy. You need a Chapter 13 to catch up the past due mortgage payments or attempt a loan modification in the Chapter 13. Good luck!
Answer Applies to: Florida
Replied: 3/24/2015
    The Law Offices of Ryan F. Beach, PLLC
    The Law Offices of Ryan F. Beach, PLLC | Ryan Beach
    Since the foreclosure process has started, your time is limited. You may keep your house by bringing the loan contractually current prior to the sheriff's sale. This is possible by paying the money owed or obtaining a loan modification. Chapter 7 will eliminate or "discharge" the mortgage debt. However, the mortgage company would still have the legal right to foreclose. If you are looking to save the home and cannot obtain the funds to bring the loan current, you should consult with a bankruptcy attorney regarding Chapter 13. You would need to do this prior to the sheriff's sale.
    Answer Applies to: Michigan
    Replied: 3/24/2015
    As long as there has not been a sheriffs sale then the filing of the bankruptcy will stop the foreclosure proceeding and you can keep the home for as long as the bankruptcy continues. A Ch 13 bankruptcy might be more appropriate as you can make up the arrearages through the 3 to 5 year plan.
    Answer Applies to: Minnesota
    Replied: 3/24/2015
    Freeman Law Group, LLC
    Freeman Law Group, LLC | Derek Freeman
    Maybe you will be able to keep your house, maybe you won't. It depends on a couple things. First, what is the homestead exemption for your state? If your equity in the home is equal to or less than the exemption amount, you will be able to keep it. But you need to state your intention in the bankruptcy forms and schedules to keep the property. Then you will need to either redeem the property during the bankruptcy or make arrangements to take care of the arrears with your mortgage lender. If you don't, the lender will probably file a motion for relief from stay, and then move forward with the foreclosure.
    Answer Applies to: Colorado
    Replied: 3/23/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    You can keep your house after a chapter 7 bankruptcy if you can resolve the issues that led to the foreclosure during the brief time that the chapter 7 case remains open. It is usually less risky to go with Chapter 13 to resolve the issue of mortgage delinquency over a 5 year period, but it is your neck in the noose.
    Answer Applies to: Nevada
    Replied: 3/23/2015
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    The bankruptcy trustee may try to do a short sale your permission. Otherwise your house is unaffected by the bk. You still need to pay your mortgage. If you file a 13 you may be able to modify and/or cure. But you must have disposable income.
    Answer Applies to: Nevada
    Replied: 3/23/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    A chapter 7 bankruptcy will stop a foreclosure from proceeding, but by itself does not guarantee you will keep your home. You must be able to work something out with your mortgage holder to get current on the mortgage over some mutually agreeable time period. That process usually involves a home mortgage modification, although if you can propose a feasible plan to get current within 5 years, you could file a chapter 13 bankruptcy instead of 7 and make payments for the amount of months it would take you to catch up. You really should talk to an experienced bankruptcy attorney who can explain your options. Property laws vary by state and could have a big impact on your choices.
    Answer Applies to: Oregon
    Replied: 3/23/2015
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    You might be able to delay the foreclosure during the pendency of the Chapter 7, but after the case concludes in a few months, the lender can resume foreclosure proceedings if you haven't cured the default or made an arrangement with them. Which leads to the dilemma of whether the house can be saved in a Chapter 13 bankruptcy, OR whether its time to accept that you can't afford the house, file the 7, which will at least delay things, get rid of your other debt, and start anew.
    Answer Applies to: California
    Replied: 3/23/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    No. A BK can delay the foreclosure since there is a stay involved. You get 120 days unless the lender makes a motion for relief from the stay.
    Answer Applies to: California
    Replied: 3/23/2015
    Wink & Wink
    Wink & Wink | Gigi Wink
    Filing Chapter 7 will place a hold on the foreclosure. However, depending on where you are in the foreclosure process, that may only last 6 weeks or so. Chapter 7 will also wipe out your legal liability on your mortgage(s), but it won't solve the problem that has you in foreclosure: your missed payments/arrears. Chapter 13 is the only Chapter of bankruptcy that will allow you to make up those missed payments over time (up to five years) and give you a chance to save your house. It can also help if you are currently trying to get s mortgage modification since you can continue that application process with the help of a bankruptcy attorney, to make sure the documents are received and processed. In short, you need to get some legal advice for the best outcome.
    Answer Applies to: Colorado
    Replied: 3/23/2015
    Rhymer Law Firm
    Rhymer Law Firm | William Rhymer
    Only if the mortgage company agrees. If you file a Chapter 7 before the sale date, you can temporarily postpone the foreclosure in Georgia. However, you would eventually have to work out something with your mortgage company or the mortgage company could eventually foreclose.
    Answer Applies to: Georgia
    Replied: 3/23/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you have no equity or if your equity is covered by the homestead exemption, then generally the trustee will have no interest in your house. But being in foreclosure does not mean you have to lose your house but your attorney can let you know of any potential problems with your specific situation if any exist.
    Answer Applies to: New York
    Replied: 3/23/2015
    Scott Goldstein | Scott Goldstein
    You may not lose the house to the trustee in a Ch 7 case, however, if you do not fix the foreclosure and get the loan repaid, you WILL lose your house in foreclosure. Chapter 7 will only delay things a bit.
    Answer Applies to: New Jersey
    Replied: 3/23/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Only if you can work out a deal with the lender. Better to file a chapter 13, then you can pay off the missed payments over up to six years.
    Answer Applies to: Ohio
    Replied: 3/23/2015
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    You might want to look at Chapter 13 rather than 7 as chapter 7 doesn't cure defaults and I assume that you are behind on payments if you are in foreclosure. It's impossible to answer this question without analyzing your financial situation: current income, amount of arrearages, living expenses, other debts are all relevant. Get a consultation with a local BK attorney as soon as you can.
    Answer Applies to: California
    Replied: 3/23/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    The answer here depends on whether you can afford to carry out a Chapter 13 Plan in which you catch up on all the arrearage over a maximum of five years. If you can do that then you should be able to keep your house, catch up on all the arrears and be back in current status by the end of the plan period You really should find an experienced bankruptcy lawyer to help you. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 3/23/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    Only if you have the funds to bring your mortgage payments current. Although the filing of a chapter 7 will stop the foreclosure for a short time, the mortgage company will ultimately be able to foreclose of the arrears are not paid.
    Answer Applies to: Virginia
    Replied: 3/23/2015
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