If I filed chapter 13 4 years ago and I kept up mortgage payments, if I let it foreclose now will it affect me? 9 Answers as of June 10, 2015

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Probably not. But if you want a definitive answer, pay an experience BK lawyer for one hour of their time to review the file with you.
Answer Applies to: Colorado
Replied: 6/10/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
The answer depends upon how the mortgage loan was treated in your chapter 13 plan. If you cured an arrearage then the debt was not discharged. You may want to contact your chapter 13 lawyer to try to determine whether the mortgage loan was discharged or not.
Answer Applies to: Colorado
Replied: 6/9/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
I have only seen a few situations in which a first mortgage lender pursued a debtor for a deficiency on a real estate loan, and in the few instances I have seen, not one had filed a Chapter 13. However, a short sale may be a far better alternative to you than foreclosure and can put some cash into your pocket.
Answer Applies to: Nevada
Replied: 6/9/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Your question is a mite unclear: Do you mean that if you stopped making payments and the creditor filed a foreclosure action against the real estate, will it affect your credit score? That's a very interesting question. If you did not sign and file a formal reaffirmation, then the mortgage note, the promise to pay, was discharged at the end of the Ch. 13, but the mortgage-holder can proceed against the real-estate. My guess and this answer is no more than a partly-educated guess, is that such a foreclosure would likely have an adverse effect on your credit score. Even though the foreclosure is against the real property and not against you personally, the practice everywhere I know is to name you as the defendant in the foreclosure. It doesn't have to be this way: the legal action could be titled LENDER vs. 284 Pine St., Plainsville Iowa, but that is not the way I've seen it done. Good Luck.
Answer Applies to: Wisconsin
Replied: 6/9/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
It depends on your plan. You will have to let local counsel look at that.
Answer Applies to: California
Replied: 6/9/2015
    Ronald K. Nims LLC | Ronald K. Nims
    In a Chapter 13, you remain liable for your secured debts (unless you surrender the property). So if you let it foreclose, you'll be liable for any deficiency (the house doesn't sell for the loan amount - and it never does because the costs of a foreclosure are extremely high), and you'll have a foreclosure on your credit report.
    Answer Applies to: Ohio
    Replied: 6/9/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    If your plan treated the debt as a continuing debt pursuant to section 1322(b)(5) it was not discharged in your chapter 13 bankruptcy and would be owed today. If the home is foreclosed resulting in a deficiency you would still owe the money.
    Answer Applies to: Michigan
    Replied: 6/8/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Yes, it will.
    Answer Applies to: Michigan
    Replied: 6/8/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you completed a chapter 13 plan then the debt should still be showing on your credit and you should still be personally liable for it, unlike a chapter 7 that would wipe out your liability for it.
    Answer Applies to: New York
    Replied: 6/8/2015
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