What will happen to the garnishments and the foreclosure after dismissal chapter 7? 9 Answers as of March 24, 2011

I am going to file chapter seven and including my house because bank of america feels I have too much debt. I have the income to make a payment but the credit is bad. I have tried for 3 years to modify and got one with wilshire. Two years ago and now haven't been able to get one with boa. What will happen to the garnishments and the foreclosure after dismissal chapter 7?

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Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
It really depends on your state's exemptions and whether the property would have been exempt in your state. Generally you are supposed to report any inheritance received within 180 days of filing to the court.
Answer Applies to: California
Replied: 3/24/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
The garnishments should stop, and the foreclosure will eventually proceed once court approval is obtained.
Answer Applies to: California
Replied: 3/22/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I suspect you are asking about what happens after the discharge. The garnishments stop and can not be revived (unless it is for some non-dischargeable debt). The house could be foreclosed upon by the bank because Chapter 7 does nothing to save the house. Chapter 13 allows you catch up on the past due mortgage payments. If you want to save the house you need a Chapter 13.
Answer Applies to: California
Replied: 3/22/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
I'm not sure if you're using the correct terminology in your question, but if I understand you correctly, you are talking about a Chapter 7 "discharge" not a "dismissal." If you file Chapter 7 and get a discharge, you can surrender your home and owe nothing more on the mortgage and any garnishments you have must cease upon filing of the petition with the court. If you truly mean that you case will be a "dismissal" without discharge, then in that case the creditors will be able to again pursue you as if the bankruptcy never happened. I hope that helps.
Answer Applies to: Indiana
Replied: 3/22/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
If your BK is dismissed, the creditor has the right to continue with garnishment and foreclosure. However, if you reaffirm or have an agreement outside of BK they cannot do so as long as you have everything in writing. Consider continuing with the BK and use an reaffirmation agreement if you have other significant debt that you need discharged.
Answer Applies to: Washington
Replied: 3/22/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    If you finish ch. 7 they will be wiped out forever.
    Answer Applies to: Alabama
    Replied: 3/22/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    All your debts get discharged, so once the case is discharged they do not come back.
    Answer Applies to: California
    Replied: 3/21/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    If it is your intention to keep the home after bankruptcy, you will need to be current on your payments or be able to work out a loan modification (or refinance through a different company). I have found that advising the bank of a pending bankruptcy may get them to move on a loan modification. I can help you with your bankruptcy action. Please contact me for a free consultation.
    Answer Applies to: California
    Replied: 3/21/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Do you mean dismissal or discharge? Big difference. Assuming you are talking about receiving a discharge, the garnishments stop right upon the filing of the bankruptcy, and the lenders on the home will not be able to collect anything else from you since their debt was discharged. Should you wish to discuss the situation further, please feel free to call or set up a consultation.
    Answer Applies to: California
    Replied: 3/21/2011
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