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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11884
Experience:  JD, MBA
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I live in LA(community propery state). I am going to file bankruptcy.

Resolved Question:

I live in LA(community propery state). I am going to file bankruptcy. I want to know a little more about the process before I do. Trying to determine if I can file Chapter 7. One of my problems. I am a couple of months behind on my mortgage(they are not trying to foreclose). I could make extra payments if I file. I have read that you can not be behind on your payments and file Chapter 7 because that will not save your house. Is that if they are trying to foreclose or can you not be behind on your payments at all? I meet the income requirements for Chapter 7 with no equity in anything. Have no other assets.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 6 years ago.

Hello and thank you for allowing me the opportunity to assist you.

When you read that you cannot be behind on your payments because a Chapter 7 does not save your home, they’re talking about situations where the lender wants to foreclose. In reality, neither Chapter 7 nor Chapter 13 can save a home. The reason is that a creditor with a lien must be paid, or he can eventually foreclose. So, regardless of the type of bankruptcy you file, you’d need to pay your mortgage. However, a Chapter 13 has one huge benefit (and this is why people say it helps to save their homes) … in a Chapter 13, you can repay the arrears in the 3 to 5 year plan, whereas in a Chapter 7, you’d need to repay the arrears immediately. However, all of this assumes that the lender is trying to foreclose. So, when I wrote that you must immediately repay the arrears in a Chapter 7, I mean that the arrears must be immediately repaid if you want to prevent the lender from foreclosing. If the lender has no plans to foreclose, then it’s not an issue.

Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.

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DISCLAIMER: Please be aware that only an attorney licensed in your state is authorized to advise you in legal matters, and that the limitations of this setting may prevent your legal issues from being thoroughly addressed. Accordingly, please understand that (1) by answering your question(s) I am not acting as your attorney, (2) my answer(s) should be construed as general information only, and (3) our discussion is not an adequate substitute for an in-person consultation with an attorney.

Customer: replied 6 years ago.

So if the lender does not want to foreclose, I should be ok. The mortgage company gets the say so? I was just a little concerned about the issue. I can pay extra on my payments to get them caught up within a few months without the extra debt. The mortgage company will probable make payment arrangements with me??

Expert:  TJ, Esq. replied 6 years ago.
Hi again.

Yes, the mortgage company decides for itself whether to foreclose ... but I can't predict whether the mortgage company will make payment arrangements with you.

If the information that I provided is helpful, then please remember to click the green accept button so that I will receive credit and compensation for my time. Positive feedback is always appreciated as well. Thank you and good luck!

DISCLAIMER: Please be aware that only an attorney licensed in your state is authorized to advise you in legal matters, and that the limitations of this setting may prevent your legal issues from being thoroughly addressed. Accordingly, please understand that (1) by answering your question(s) I am not acting as your attorney, (2) my answer(s) should be construed as general information only, and (3) our discussion is not an adequate substitute for an in-person consultation with an attorney.

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