If I file Chapter 7 and I Do Not reaffirm my mortgage, am I still liable for the mortgage? 6 Answers as of October 28, 2010If I am filing chapter 7 bankruptcy. Am I still liable to pay my mortgage? I choose to pay the mortgage, and then decided I can no longer pay, can I walk away without being liable for what is owed?
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Filing bankruptcy will absolve you of personal liability on the mortgage note. Generally, liens "ride through" bankruptcy unless they are avoided or stripped off. However, there is no lien stripping in chapter 7. This means that if you later quit making the monthly payments the lender can still foreclose on the property, but cannot come after you personally. Consult with an attorney.
Answer Applies to: California