The bad news is that some homeowners filing for Chapter 7 bankruptcy will lose their home. In Chapter 13 bankruptcy, you can keep your home and continue with your current mortgage. If you file (and qualify) for Chapter 7 bankruptcy and your home is exempt, you can continue to make your mortgage payments if you want to keep your home.

How to make your mortgage payments after bankruptcy?

1 Chapter 7 Bankruptcy and Your Mortgage. If you file (and qualify) for Chapter 7 bankruptcy and your home is exempt, you can continue to make your mortgage payments if you 2 Chapter 13 Bankruptcy and Your Mortgage. 3 Modifying Mortgages: Cram Down in Bankruptcy. 4 Getting Your Lender to Modify Your Home Loan. …

What happens if I do not reaffirm my mortgage after bankruptcy?

In other words, when you reaffirm a debt, you promise to pay the debt even though you filed for bankruptcy relief. Read on to learn about the pros and cons of reaffirmation agreements and what happens if you choose not to reaffirm your mortgage after declaring bankruptcy.

Can You Keep Your House if you file bankruptcy?

If you kept your house throughout the bankruptcy process, you are free to keep your home after the bankruptcy – as long as you continue to pay the mortgage. It may be that after you are free of all the rest of your debt you will be able to afford the mortgage payments easily. If so, you’ll be able to keep your house.

Can a second mortgage be canceled in bankruptcy?

A May 2012 court ruling has declared that under Chapter 7, second mortgages may be canceled by the bankruptcy court if the debt meets certain criteria. However, this is limited to people living in a jurisdiction under the 11th Circuit Federal Court of Appeals, and who are current on the mortgage payments for their primary home for this to happen.

Do you need to file bankruptcy to keep your house?

Some individuals do not think they need to file Chapter 7 if they are giving up their home. Filing a Chapter 7 bankruptcy case has many benefits, even if you’re not hanging on to a house with an expensive mortgage. Some of the benefits of filing for debt relief under Chapter 7 include:

Can a second mortgage be removed in Chapter 7 bankruptcy?

Lien stripping is the process of removing junior liens (such as second or third mortgages) from your house if the balance of your first mortgage (or other senior liens) exceeds the value of the property. Lien stripping isn’t available in Chapter 7 bankruptcy.

What happens when you file bankruptcy and Surrender Your Home?

When you file Chapter 7 and surrender the home, the lender does not receive a deficiency judgment. If you already have a deficiency judgment against you, filing Chapter 7 will get rid of it. Filing Chapter 7 gets rid of most, if not all, your unsecured debts. That means you can get rid of credit card debt, medical bills]