What happens to my house after Chapter 7?
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Also question is, can I keep my house after filing Chapter 7?
Most Chapter 7 bankruptcy filers can keep a home if they're current on their mortgage payments and they don't have much equity. However, it's likely that a debtor will lose the home in a Chapter 7 bankruptcy if there's significant equity that the trustee can use to pay creditors.
Also Know, what happens to my house in Chapter 7? If You Are Not Current on Mortgage Payments Here's why. When you complete a Chapter 7 bankruptcy, your debts are discharged. This includes your mortgage debt. However, even though you are no liable for your mortgage, the lender still has a lien against the property (Chapter 7 bankruptcy does not get rid of liens).
Additionally, how long can you stay in your house after filing Chapter 7?
Depending upon where you live, you may be able to remain in your home for six months or more after your Chapter 7 bankruptcy has been finalized. Once your bankruptcy is discharged, you will need to find another place to live. However, you may not need to leave your house immediately.
What happens to my mortgage if I file Chapter 7?
A mortgage is a secured debt. Filing a Chapter 7 bankruptcy doesn't wipe out the mortgage lien that allows the lender to foreclose if you fail to pay as agreed. Chapter 7 bankruptcy also doesn't provide a way for you catch up on the overdue payments.