If you are planning to file a Chapter 7 or Chapter 13 to halt a foreclosure against your home, it is crucial that you understand what you should and should not do. Many clients incorrectly believe that they can stop making their mortgaage payments if they file bankruptcy and continue living in their house. Below are three things you need to know:
- In a Chapter 7 filing, you can discharge your personal obligation to pay your mortgage if you surrender your home back to the lender. In other words, if you successfully complete your Chapter 7 and obtain a discharge order, you are no longer financially obligated to pay your mortgage loan, but you do not get to keep the property.
- To keep possession of your home in a Chapter 7 case, you must remain current on your mortgage payments. In a Chapter 13 filing, your repayment plan must provide for becoming current on your mortgage loan.
- If you are past due on your mortgage loan payments when you file your bankruptcy, your lender can file a motion seeking relief from the automatic stay. If the court grants the motion, your lender will be allowed to proceed with the foreclosure action, regardless of your bankruptcy filing.
It is important to contact us to learn all of your options before you file your personal bankruptcy case. We can discuss what you must do to keep your home and how surrendering possession of your home back to the lender will impact you.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC for all your Chapter 7 and Chapter 13 bankruptcy needs. Whether you need debt negotiations or debt relief, or even foreclosure defense, DeLadurantey Law Office will handles bankruptcy matters for the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. DeLadurantey Law Office, LLC can be contacted by phone at (414) 377-0518.