How will the discharge help me? 18 Answers as of June 30, 2011

I am filing for bankruptcy because I can't pay my mortgage on top of all my other expenses. If my house is exempt but I cannot pay the mortgage or sell it to pay off my creditors, what am I to do?

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Southern California Law Advocates
Southern California Law Advocates | Norma Duenas
You need to talk to an experienced bankruptcy lawyer to determine what is the best option for you. If you cannot afford to continue to make your monthly mortgage payments, then you should discuss whether it is better to surrender your property as part of your bankruptcy case. An attorney should do an assessment of your income and expenses to give you a better idea of what your options are in this situation.
Answer Applies to: California
Replied: 6/30/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
In order to keep your house after bankruptcy you need to pay the mortgage payments in full and on time, otherwise the lender can foreclose.
Answer Applies to: California
Replied: 6/30/2011
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
That is what bankruptcy is for. Look into 13.
Answer Applies to: California
Replied: 6/30/2011
Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
Bankruptcy eliminates expenses related to discharged debts. This affords you more cash for the mortgage.
Answer Applies to: California
Replied: 6/30/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
Even in bankruptcy, if you can't pay for your house, the creditor will (eventually) foreclose, but you won't be liable for any more payments on it. You will have to pay HOA dues incurred after filing, and keep the property looking decent and place liability insurance on it. You should stay there until foreclosure and that will allow you to save some money.
Answer Applies to: Virginia
Replied: 6/30/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    The discharge will eliminate your obligation to pay on your dischargeable debts. In the case of the mortgage, it will eliminate any deficiency amount you would owe under your state's laws after a foreclosure or other sale of the property.
    Answer Applies to: California
    Replied: 6/30/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    If you can't pay your mortgage, you will have to surrender it to the bank in the bankruptcy and get out from your liability on the mortgage note.
    Answer Applies to: Indiana
    Replied: 6/30/2011
    Mercado & Hartung, PLLC
    Mercado & Hartung, PLLC | Christopher J. Mercado
    Discharge will release your personal liability but the security interest will remain on the property. After the BK, they will likely foreclose so you'll need to look into your options like foreclosure defense, HAMP, loan modifications, short sales, etc.
    Answer Applies to: Washington
    Replied: 6/30/2011
    Law Office of Dennis Jay Sargent Jr, PLLC
    Law Office of Dennis Jay Sargent Jr, PLLC | Dennis J Sargent Jr.
    Bankruptcy is not a simple matter. Counsel with an experienced Bankruptcy Attorney is needed to determine what is best in your particular situation. There are a few options where you may determine that surrendering your home to your secured creditor or mortgage company is best. Surrender is an important aspect of bankruptcy, but needs to be conducted in such a way as to protect the debtor from future non-dischargeable debts, such as insurance, HOA dues and taxes. Consulting a local attorney to discuss your options is the best way to determine what is right for you.
    Answer Applies to: North Carolina
    Replied: 6/29/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    A discharge in Bankruptcy will eliminate your personal liability for your debts. This means that if your home is foreclosed on and there is a deficiency, you will not be responsible for the shortfall.
    Answer Applies to: New Hampshire
    Replied: 6/29/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    You can discharge your mortgage in your bankruptcy. This prevents the mortgage company from coming after you for the deficiency amount (the difference between what you owe and what they sell your house for).
    Answer Applies to: Michigan
    Replied: 6/29/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    If you cannot afford your mortgage payments, then bankruptcy will not help you keep your house. It will clear up other debts which may make the mortgage payments easier to handle. A bankruptcy discharge will protect you from a deficiency judgment if your house is taken in foreclosure. A Chapter 13 case can even help you catch up your mortgage payments. However, bankruptcy will not save your house if you cannot afford your regular house payments.
    Answer Applies to: Colorado
    Replied: 6/29/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    The discharge of your unsecured debts, such as credit cards, may allow you to afford your home. If you cannot afford your home then you will eventually lose it to foreclosure. You should apply for a loan modification to see if you can reduce your mortgage payments.
    Answer Applies to: California
    Replied: 6/29/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    The reality is that if you have a home you can not afford, eventually you will lose it. See if you can get a loan mod. Contact NACA on the net. They have helped some of my clients.
    Answer Applies to: California
    Replied: 6/29/2011
    Raxter Law
    Raxter Law | Jeremiah Raxter
    A discharge removes your personal liability for the debts.
    Answer Applies to: California
    Replied: 6/29/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    You would NOT be filing bankruptcy in this situation unless you wanted to lose the house. I suspect your question has more complexity than you realize, as you do not tell us what those expenses are, so your question may not give an accurate answer. You are confusing exempting property with keeping it (and since exemptions for homes in most states are capped at a low number, few houses are fully exempt). See a lawyer and give him the whole story.
    Answer Applies to: Georgia
    Replied: 6/29/2011
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    Sounds like you need to talk with your bankruptcy attorney and discuss these issues to make sure you are doing the right thing.
    Answer Applies to: Florida
    Replied: 6/29/2011
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