Will I be able to keep my home if I got a discharge from my chapter 7 bankruptcy? 25 Answers as of June 23, 2013

If I just received a discharge on a chapter 7 bankruptcy, but I still owe back mortgage payments, even though I've been making a payment every month during the bankruptcy, will I lose my home? or be able to keep it? Will I still owe the back payments?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
You do not owe the money, but the lender still has the right to take the property if it is not paid. Since you are behind, you run the risk of foreclosure.
Answer Applies to: Michigan
Replied: 10/5/2011
Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
The chapter 7 discharge eliminates your personal liability on the mortgage, but it does not compel the bank to deduct the arrearage from your payoff of the lien. You may file a chapter 13 in order to catch up on the deficiency or alternatively work directly with the bank to modify the mortgage or maybe attempt to tack on the arrearage to the tail-end of the loan. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers.
Answer Applies to: California
Replied: 9/26/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You still owe the back payments and they will foreclose on you. You should see a lawyer ASAP about Chapter 13 and/or reopening the chapter 7 case and converting it to Chapter 13. That is a bankruptcy that lets you get caught up on the payments.
Answer Applies to: California
Replied: 9/21/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
The property is still on the hook for the security interest, if you want to keep it you will need to pay the mortgage.
Answer Applies to: Washington
Replied: 9/21/2011
D T Pham Associates, PLLC
D T Pham Associates, PLLC | Duncan T Pham
Did you reaffirm your home mortgage ??? If you did, you will keep your home for as long as you make the payments called for in the reaffirmation agreement.
Answer Applies to: Texas
Replied: 9/20/2011
    Heupel Law
    Heupel Law | Kevin Heupel
    In order to keep your home after filing Chapter 7, you need to make all mortgage payments including the arrearages.
    Answer Applies to: Colorado
    Replied: 9/20/2011
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    It depends whether you reaffirmed the mortgage on your house. Generally you must keep current on your mortgage to prevent foreclosure.
    Answer Applies to: Georgia
    Replied: 9/20/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Filing bankruptcy means you no longer have personal liability for payment of your home, if you give it up. Since the lender retains its security interest in spite of bankruptcy you must remain current with your loan. If you don't pay for your home the lender will foreclose.
    Answer Applies to: California
    Replied: 9/20/2011
    Bankruptcy Law Center
    Bankruptcy Law Center | Bill Zurinskas
    In Colorado, foreclosure after chapter 7 bankruptcy is likely if you are not current on your mortgage payments. For debtors who want to keep their homes in chapter 7 bankruptcy, it is important to be current on the mortgage payments at the time of the bankruptcy filing and keeping current thereafter. The fact that you kept current on your mortgage payments during the bankruptcy didn't get you out of default status, since you are still in default the lender may foreclose on its lien [even though the underlying debt has been discharged (absent reaffirmation) since the underlying lien survives the bankruptcy generally]. For debtors who want to keep their homes and are behind in their payments, chapter 13 bankruptcies gives the debtor the option of curing the default over time in the chapter 13 payment plan. If you have reaffirmed the 1st or 2nd mortgages, you should consider revoking the reaffirmation agreement(s) if not too late (it is too late if 60 days have passed since it was filed with the court).
    Answer Applies to: Colorado
    Replied: 9/20/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Yes you certainly do owe the back payments. If you do not fairly quickly catch them up the mortgage company may accelerate the foreclosure process due to your filing bankruptcy and not being caught up on them. I would call the mortgage company and see if they will consider some type of modification that would bring you current or perhaps enter into an agreement where you agree to pay partial payments on top of your regular payments until it is caught up. You can definitely lose your home over this, so do not procrastinate, call them today!
    Answer Applies to: Michigan
    Replied: 9/20/2011
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    If you want to keep the house you must get current with the mortgage. Lender may allow you to set up a plan to get current.
    Answer Applies to: Colorado
    Replied: 9/20/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    You no longer have any personal liability on the mortgage unless you reaffirmed the debt. However, you still must catch up in full before the foreclosure sale if you want to keep your house.
    Answer Applies to: Colorado
    Replied: 9/20/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    If you keep making your payments, you should be able to keep the home after bankruptcy. It's between you and then bank - and if you don't keep it and didn't sign a reaffirmation agreement, you can avoid personal liability on the mortgage.
    Answer Applies to: Indiana
    Replied: 9/20/2011
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    The best answer to this question is how long will the mortgagee tolerate your default. Your chapter 7 has nothing to do with the decision. Most likely one day the mortgagee will make a business judgment to foreclose. You should then see if a chapter 13 can stop that.
    Answer Applies to: Michigan
    Replied: 9/20/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Hopefully you did not file pro se. Your lawyer will already have figured out the answer based on your paperwork, so ask him.
    Answer Applies to: Georgia
    Replied: 9/20/2011
    Grasso Law Group
    Grasso Law Group | Charles Grasso, Esq.
    You will still owe the back payments because they are associated with a secured debt . As long as you do not default on loan, in which case the bank can foreclose, then you should be able to keep the house. You'll have to make arrangements to pay the back payments - you may to inquire of your lender if they would modify your loan or agree to a reasonable repayment plan to allow you to catch up on the back payments.
    Answer Applies to: California
    Replied: 9/20/2011
    Law Office Of Magnolia Zarraga
    Law Office Of Magnolia Zarraga | Magnolia Zarraga
    You cannot keep your home unless you pay back all the arrears (months behind) on your house. Alternatively you can ask the lender for a modification which can extend the term of your loan and bring you current. Absent lender agreement or you catching up with your payments, the lender has the right to commence foreclosure on your home or continue foreclosure if it had already began prior to you filing the bankruptcy. How much time you may have in your home depends on a lot of facts which you do not give, contact your attorney, they are in the best position to assist you. If you have steady income, you might consider filing a chapter 13, that would allow you to repay the arrears over 3-5 years, but you would have to have the ability to continue to make your regular mortgage payment. How much time you may have in your home depends on a lot of facts which you do not state here, contact your attorney, they are in the best position to assist you.
    Answer Applies to: California
    Replied: 9/19/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    If you want to keep your home (secured debt) you must make the creditor happy. If they have been accepting your payments you might be OK. However they can insist at some point that you catch up on the payments.
    Answer Applies to: California
    Replied: 9/20/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Legally you no longer have any obligation to pay as the debt was discharged by the bankruptcy. However, the lien of the lender was not removed as liens do not go away in bankruptcy. Therefore, if you are behind and do not catch the payments up or make some arrangement with the lender, they can commencement foreclosure. It entirely depends on what you lender wishes to do.
    Answer Applies to: California
    Replied: 9/19/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    If you pay it and have exempted any equity.
    Answer Applies to: California
    Replied: 6/23/2013
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    If you filed a chapter 7, you will still owe the back payments on the home. The creditor can foreclose on the home due to the arrears.
    Answer Applies to: California
    Replied: 9/19/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Yes, you owe back payments, late charges, etc. and the bank will foreclose eventually unless you pay or modify the mortgage. Chapter 7 does not affect secured debt.
    Answer Applies to: California
    Replied: 9/19/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    You will still owe the back payments, and if you do not pay them the creditor will eventually foreclose on the property.
    Answer Applies to: California
    Replied: 9/19/2011
Click to View More Answers:
12 3 4 5 Free Legal QuestionsConnect with a local attorney